Japan has relaxed its self-imposed decades-old ban on exports of military equipment.
The rule, adopted in 1967, banned sales to communist countries, those involved in international conflicts or subject to United Nations sanctions.
It later became a blanket ban on exports and on the development and production of weapons with countries other than the United States, making it impossible for manufacturers to participate in multinational projects.
Chief Cabinet Secretary Osamu Fujimura said the government's security council agreed to the relaxing of the ban to allow Japan to take part in the joint development and production of arms with other countries and supply military equipment for humanitarian missions.
"The regulations on weapons exports are based on the concept that as a pacifist country Japan should aim to avoid fanning international conflicts, and we will keep a close watch on exports," Mr Fujimura said.
The relaxing of the rules does not mean Japan will begin openly selling its military products to the world. Exports will be limited to strategic allies like the United States.
The move could still allow companies such as Mitsubishi Heavy to join the development of Lockheed Martin's F-35, which Tokyo picked last week as its next frontline fighter, planning to buy 42 machines at an estimated cost of more than $US7 billion.