Japan's Maritime Self-Defense Force soldiers salute the Defence Minister Yasukazu Hamada onboard JMSDF's multi-purpose destroyer Izumo during an International Fleet Review to commemorate the 70th anniversary of the foundation of JMSDF, in Yokosuka, south of Tokyo, Japan Nov 6, 2022.
In private meetings with the defence ministry over the last year, some firms have raised concerns such as low profit margins, the financial risk of building manufacturing plants that could be left idle after Japan completes its military expansion, and potential damage to their public image from arms sales, an official directly involved in the talks told Reuters.
Sato said it was increasingly difficult for Japanese executives to justify defence sales out of "patriotic duty" to shareholders focused on more profitable civilian ventures. Aircon manufacturer Daikin has a munitions sideline; Toshiba, which makes electronic goods such as printers, also produces military-grade batteries; and Mitsubishi Electric makes radars and missiles alongside fridges and vacuum cleaners.
Five firms did not reply, and the rest declined to say whether they had joined in other discussions. The companies who responded declined to give details of the meetings or any concerns they raised during the talks.Many companies are reluctant to talk about their defence units, fearing it might put off customers at home, where anti-military sentiment lingers, or overseas, particularly in China, where resentment over Japan's wartime past could be politicised.
"Reputation risk worries us a lot," the official said. "There have been occasions when our Chinese customers have expressed their discomfort when the topic of defence has come up."
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