Japan to Expand Drone Assistance in Indo-Pacific to Counter Chinese Dominance

Japan is set to expand its provision of drones to like-minded Indo-Pacific nations from fiscal 2025, aiming to strengthen regional security and promote its domestic drone industry as an alternative to China’s dominance in the sector.

The initiative will be carried out under Japan’s Official Security Assistance (OSA) framework, which was introduced in 2023 to provide defense-related equipment to ideologically aligned nations without contributing to international conflicts. The government has allocated 8.1 billion yen ($53.5 million) for OSA-related expenses in the fiscal 2025 budget, marking a 60% increase from the previous year. The program is expected to benefit eight or nine countries.

Japan previously supplied drones to Malaysia in 2023, but the upcoming expansion will focus on providing drones to Asian and Pacific island nations for infrastructure monitoring and territorial surveillance. Given the growing concerns over Chinese military activity in the Indo-Pacific, Japan seeks to offer alternatives to drones produced by China, particularly those made by DJI, which dominates the global civilian drone market. Many countries have raised security concerns over potential data leaks from Chinese-manufactured drones, fueling demand for alternative suppliers.

In preparation for the initiative, Japan’s Foreign Ministry and the Ministry of Economy, Trade and Industry have reached out to domestic drone manufacturers, including members of the Japan UAV Association, which comprises major companies like Subaru and Yamaha Motor. The gathered information will be compiled into a product catalog for potential recipient nations.

Beyond security concerns, Japan is also looking to bolster its domestic drone industry. Despite having over 20 manufacturers and 50 suppliers, Japanese companies currently lag behind global competitors in terms of mass production. Industry experts believe that increasing drone exports through OSA could help Japanese firms expand their presence in the global market.

The government is introducing subsidies and support measures to assist in drone development and commercialization. With Japan’s drone market projected to grow from 385.4 billion yen in 2023 to 905.4 billion yen by 2028, experts believe capturing international demand could help Japan compete with China.

A representative from Nagoya-based drone developer VFR highlighted Japan’s advantage in advanced imaging sensor technology and its strategic location near China and North Korea. Keio University professor and drone expert Tomoyuki Furutani also emphasized that increased exports through OSA could boost deterrence against China while encouraging more Japanese firms to enter the market. However, he noted that partnerships with overseas businesses and strong government support will be essential for scaling up production and ensuring competitiveness on the global stage.