The move announced on Tuesday aims at strengthening Japan's defence industrial base and marks another step away from pacifist restraints that have shaped its postwar security policy.
Wars in Ukraine and the Middle East are also straining US weapons production, expanding opportunities for Japan. At the same time, US allies in Europe and Asia are looking to diversify suppliers as Washington's long-held security commitments look less certain under President Donald Trump.
"No single country can now protect its own peace and security alone, and partner countries that support each other in terms of defence equipment are necessary," Japanese Prime Minister Sanae Takaichi said on X.
Japanese officials and diplomats have told Reuters that countries ranging from Poland to the Philippines are exploring procurement opportunities as they modernise their forces. One of the first deals could be the export of used warships to Manila, two of the sources said.
The revision approved by Takaichi's government removes five export categories that had limited most military exports to rescue, transport, warning, surveillance and minesweeping equipment. Ministers and officials will instead assess the merits of each proposed sale.
Japan will keep in place three export principles that commit it to strict screening, controls on transfers to third countries and a ban on sales to countries involved in conflict. But in a presentation outlining the changes, the government said exceptions could be made when deemed necessary for national security.
Tokyo hopes such defence exports will shore up its industrial base by boosting production volumes, lowering per-unit costs and adding manufacturing capacity it could draw on in a military crisis.
Japan is pressing ahead with unprecedented efforts to bolster its military - buying missiles, stealth jets and drones it says are needed to deter any threat posed by neighbouring China to its territory, including around islands along the edge of the East China Sea near Taiwan.
Japan has steadily increased defence spending in recent years to two per cent of GDP, and Takaichi's government is expected to announce further rises this year when it releases a new security strategy.
