The Emergence of the Asian Defence Industry: Are China and Japan Going to Face a War in the ‘Busines

Inability to resolve the historical legacies and boundary disputes, the competition for resources, the rise of China, the US pivot to Asia, the unstable regime of North Korea and the changing Japanese security identity are some of the multifarious security problems for the region. [...] WORLD DEFENCE MARKET OUTLOOK There are five main factors that appear to be affecting the global defence industry today: the hierarchical nature of the global process of armaments production, the impact of military spending upon the defence industry, the effects of the international arms trade, the process of defence-industrial globalisation, and the emerging information technologies-based Revoluti. [...] to strengthening security and defence cooperation with the United States as well as other countries24.” The new principles lay out that the Japanese government will make a comprehensive judgment in the light of the existing guidelines of the international export control regime and, based on the information available, will analyse the extent to which the overseas transfer of such equipment and tech. [...] The performance of the market is forecast to accelerate, with an anticipated CAGR of 7.7 percent for the five-year period 2013-18, which is expected to drive the market to a value of $65.5 billion by the end of 2018.26 COMPETITION, OR NOT? Barack Obama’s shifting the American military and diplomatic pivot to the Asia-Pacific puts the two regional neighbours, China and Japan, more sharply into the. [...] On the whole, while the countries do not find themselves in direct competition, the dynamics of power rivalry, coupled with historical animosities, lend an edge of uncertainty to the question of whether China and Japan will face a war in the ‘business of war.’ AIR POWER Journal Vol.