Australia’s decision to select a Japanese warship for its next frigate class could prove to be a watershed moment for Japan’s defense industry as Tokyo strives for greater military cooperation and industrial tie-ups with allies and partners.

Despite challenges ahead, the successful bid will not only serve as a confidence booster, but also support Japan’s efforts to become a larger arms provider across the wider Asia-Pacific region, experts say, as the planned sale of upgraded Mogami-class frigates — and its successful implementation — could set a favorable precedent for other countries to consider major Japanese capabilities for their own militaries.

“That Japan now has a major capability export agreement to point to as something of a 'proof of concept' will definitely help boost its status as a serious regional defense-industrial player,” said Tom Corben, a defense and foreign policy expert at the United States Studies Center.