- Japan is considering policy changes to allow government ownership of defense production facilities
- The Japanese government plans to shift to a GOCO model that would combine state-owned factories with private-sector operations
- The draft would expand the government’s role in securing ammunition and defense equipment production
Japan is evaluating policy revisions that would allow the government to own defense production facilities to ensure a stable supply of ammunition and other military equipment during a prolonged conflict, The Japan Times reported Wednesday.
Why Is Japan Considering a GOCO Model?
A draft of the government’s annual Basic Policy on Economic and Fiscal Management and Reform outlines a possible transition to a government-owned, contractor-operated, or GOCO, model, enabling the state to own defense production facilities while private companies oversee their daily operations.
The draft proposes revising Japan’s law on defense production and technology infrastructure to expand the government’s role in supplying defense equipment. It also suggests relaxing the legal requirements that currently limit the Defense Ministry’s ability to acquire privately owned production facilities, except when standard procurement support measures fail.
In addition, the government is considering expanding opportunities for private companies to operate state-owned manufacturing facilities.
What Other Defense Industry Changes Are Under Review?
The draft also proposes creating a state-backed organization to support overseas defense exports by coordinating equipment transfers, financing and negotiations with foreign governments on behalf of Japanese companies. The government also plans to strengthen defense-related research and development through national laboratories, universities and startups while accelerating the adoption of technologies such as artificial intelligence and drones.
The proposal continues Japan’s broader defense modernization effort. In April, the government announced plans to lift its longstanding ban on lethal weapons exports to strengthen defense cooperation with allies. The initiative also aligns with Prime Minister Sanae Takaichi’s push to expand defense spending and modernize Japan’s military in response to a changing regional security environment.
