Raytheon Company (NYSE:RTN) co-developed its SM-3 surface-to-air missile with Japan’s Mitsubishi Heavy Industries, and the missile plays an important part of the country’s defense against the likes of North Korea’s aggressive missile tests, and China’s growing air power, which has only increased with the deployment of fifth-generation fighters like the ballyhooed J-20 stealth interceptor.
Considering Japanese sentiment for a strong military is picking up, and the threat of China’s resurgent military won’t disappear any time soon, the tension between these two regional powers could be just the opportunity defense firms need as America’s industry takes a hit from sequestration.
The article Is Japan the Defense Industry’s Next Hot Spot? originally appeared on Fool.com.
Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin and Raytheon Company.
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