Japan's Struggle to Recruit Major Brands for Military Expansion

Japan's military expansion plan to deter China from using force in the East China Sea has hit a roadblock as some of Japan's best-known brands are reluctant to invest in the military side of their businesses. In private meetings with the defense ministry, 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. The government is preparing legislation that includes raising profit margins on military gear from a few percent to as much as 15%, and the provision of state-owned factories that companies can use to expand production risk-free.