"With this partial revision of the Three Principles on Transfer of Defense Equipment and Technology and related rules, it has now become possible, in principle, to permit the transfer of defence equipment, including all finished products," Kihara said at a news conference.

Prime Minister Sanae Takaichi argues that Japan must relax its rules on weapons exports to bolster national defence while also trying to boost the domestic arms industry as a driver of economic growth.

She posted on X Tuesday: "Until now, the overseas transfer of domestically produced finished products had been limited to search and rescue, transportation, surveillance, mine countermeasures (so-called "five categories"), but with this amendment, transfers of all defense equipment will in principle become possible."

Proponents of the policy shift argue that the change should further integrate Tokyo in the international defence supply chain, deepening defence, diplomatic and economic ties with partner nations as regional instability heightens.

But the decision has caused unease among some members of the Japanese public, with critics accusing Takaichi of eroding the proud history of the nation's staunch pacifism.