The defense white paper places military modernization within the same economic narrative. Beijing rejected the sections of the white paper concerning the Chinese military, accusing Japan of spreading false narratives and using regional tensions as an excuse to ease restrictions on its military buildup. The white paper therefore lands in the middle of a larger political debate. Japan’s defense industry has long faced thin profit margins, strict export rules and limited domestic demand compared with major arms-producing countries. The controversy surrounding the white paper is therefore not only about defense policy.