Lockheed Martin and BAE Move Asia Headquarters to Japan... Preparing for Contingency in Taiwan?

Relocation of Headquarters from Southeast Asian Countries to Japan
Considering Japan's Geopolitical Characteristics Adjacent to Taiwan

As global defense companies such as the United States' Lockheed Martin and the United Kingdom's BAE Systems begin relocating their Asian headquarters to Japan, attention is focusing on the underlying reasons. Some analysts suggest that the heightened risk of China's invasion of Taiwan is driving geopolitical considerations to prepare more seriously. Japanese media also report that Japan's recent significant increase in defense spending appears to have acted as an incentive.

[Image source=AP Yonhap News]

On the 28th, the Nihon Keizai Shimbun (Nikkei) reported that BAE Systems, the UK's largest defense company, will transfer its Asia headquarters from Malaysia to its Japanese subsidiary within this year. This Japanese subsidiary was established last year, and BAE Systems is known to plan sending regional managers there to oversee the entire Asian strategy. Nikkei stated, "Besides selling weapons to the Japanese government or major defense companies and seeking collaboration, BAE Systems is expected to focus on expanding its procurement sources."

With the headquarters moving to Japan, domestic Japanese defense companies are also expected to benefit. BAE Systems is a key player in the 'Global Combat Air Program (GCAP),' a joint next-generation fighter development project led by Japan, the UK, and Italy. BAE Systems plans to further increase partnerships with companies participating in this program, such as Mitsubishi Heavy Industries.

Lockheed Martin, the world's top defense company from the United States, has also relocated its Asia headquarters from Singapore to Japan and recently completed this transition. Similarly, Lockheed Martin had previously focused on covering Southeast Asia, which had frequent conflicts. The move to Japan appears to have been influenced by rising tensions in Northeast Asia, including North Korea's missile launches and threats to Taiwan. Lockheed Martin plans to use Japan as a base to oversee South Korea and Taiwan.

This shift seems to be influenced by the recently increased risk of China's invasion of Taiwan. Some parts of Japan, such as the Nansei Islands, are adjacent to Taiwan, and as the possibility of a Chinese invasion of Taiwan has been raised, the Japanese government has focused on significantly strengthening the defense capabilities in these areas.

Earlier, the Japanese government announced plans to upgrade the Okinawa Ground Self-Defense Force unit from a brigade to a division and to expand transport aircraft and aerial refueling tankers in the Nansei Islands. They also plan to extend the runways at Yonaguni-jima and Miyako-jima airports, which are adjacent to Taiwan, to allow the Self-Defense Force's F-35 fighters to land.

[Image source=Yonhap News]

There is also analysis that Japan has become a 'spending country' to prepare for a Taiwan invasion, thereby attracting defense companies. The Japanese government increased the total defense budget for 2023?2027 to 43 trillion yen, 1.5 times the current amount. It plans to allocate 5 trillion yen for missiles used in counterattack capabilities and 9 trillion yen, double the current amount, for maintenance and repairs such as replacing aging parts.

The Japanese government intends to use this opportunity to significantly increase arms imports and enable the export of lethal equipment jointly developed with foreign defense companies. Nikkei reported, "The Japanese government will revise the operational guidelines for the 'Three Principles on Transfer of Defense Equipment' within the year."

The revision of the operational guidelines will mainly recognize that even lethal weapons can be exported if their purpose is for rescue, transport, surveillance, or monitoring. It will also include provisions allowing equipment jointly developed by Japan and other countries to be provided to third countries. Until now, jointly developed Japanese equipment could only be given to the partner countries involved in the development.

This content was produced with the assistance of AI translation services.