Japan has struggled to export cutting-edge defense equipment. However, past disappointments have been turned on their head after Japan won selection for a lucrative Australian frigate requirement worth up to US$6.5 billion.

Japan's successful bid will serve as a confidence booster and could set a precedent for other countries to consider Japanese capabilities for their own militaries.

Japan clinched a landmark A$10 billion ($6.5 billion) deal on Tuesday to build Australia's next-generation warships, marking Tokyo's most consequential defence sale since ending a military export ban in 2014 in a step away from its postwar pacifism.