Abstract: Japan’s lifting of its arms export ban through the Three Principles on the Transfer of Defense Equipment and Technology has opened up new strategic opportunities for its policy-makers to reinforce existing, and build new, security partnerships. Japan still retains the intent to sustain and develop an indigenous defense production base, now through international collaboration rather than mainly autonomous production, and the leverage this may provide to hedge within and outside the US–Japan alliance framework. However, this paper demonstrates that Japan’s principal objective through international arms transfers is very much to use this as a mechanism to strengthen Japan’s integration of capabilities into the US–Japan alliance and overall US ‘rebalance’ strategy in East Asia. Japan’s main moves in developing an arms transfer strategy have either revolved around US–Japan bilateral projects, or cooperation with US allies and partners. Moreover, Japan’s continuing deficiencies in military technology and experience of international collaboration on the government and private sector levels means that its arms transfer strategy remains quite limited in ambition and especially implementation.