Japan has scrapped old arms export restrictions, shifting away from its pacifist policy. This move, approved by the cabinet, could lead to sales of lethal equipment, raising serious concerns from Beijing.

Japan has scrapped long-standing restrictions on arms exports in a major break with its post-war pacifist policy that is likely to derail any potential thaw in relations with China. The plans, given final approval by the cabinet on Tuesday, could clear the way for sales of lethal equipment that had long been banned and prompted expressions of “serious concern” from Beijing. Japan’s Three Principles on Transfer of Defence Equipment and Technology had previously limited exports to five non-combat....