Australia is now set to operate a fleet of Mogami class frigates through a first-of-its kind defense export deal for post-World War II Japan.

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

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.