Japan clinched a landmark A$10 billion ($6.5 billion) deal on Tuesday to build warships for Australia, marking Tokyo’s most consequential defence sale since ending a military export ban in 2014 as it steps away from postwar pacifism to counter China. Under the agreement, Mitsubishi Heavy Industries (7011.T), opens new tab will supply the Royal Australian Navy with three, upgraded Mogami-class multi-role frigates built in Japan from 2029. Eight more frigates will be built in Australia. Designed to hunt submarines, strike surface ships and provide air defence, the highly automated warships can be operated by just 90 sailors, half the crew of Australia’s aging Anzac-class frigates. Australia plans to deploy the ships to defend critical maritime trade routes and its northern approaches in the Indian and Pacific Oceans, where China’s military footprint is expanding. “It’s going to be really important in terms of giving our navy the capability to project, and impactful projection is at the heart of the strategic challenge,” Australian Deputy Prime Minister Richard Marles said at a briefing. The Mogami, emblematic of a global shift toward versatile modular warships, offers more firepower and a 4,000 nautical miles more range than the current fleet. “It takes our general purpose frigates from being able to fire 32 air defence missiles to 128,” including “the most advanced”, defence industry minister Pat Conroy said at the briefing with Marles. The deal also anchors Japan’s push to forge security ties beyond its alliance with the U.S. to counter China.

Full report : Japan clinches landmark $6.5 billion warship deal with Australia to counter China.