Can the METI-Mitsubishi Heavy jet take off?
The Daily Yomiuri, The Yomiuri Shimbun, Oct. 2, 2006
Manufacturing a passenger jet of its own is a long-cherished ambition of Japan’s aircraft industry. To reach that goal, the government and Mitsubishi Heavy Industries Ltd. are joining hands. But they must clear a number of hurdles before a project to develop the jet airliner, dubbed the MJ for Mitsubishi Jet, can get off the ground….
…both the government and the industry have held a strong desire to develop a new passenger aircraft–the first of its kind since the development of the YS-11.
The government has invested about 9 billion yen in the MJ project so far…The company also has to find a solution to the problem of development costs. Estimates now place costs at 120 billion yen–double the original estimate of 60 billion yen.
MHI admits that the government and the main contractor cannot afford to take all the risks on their own. As a result, the company is now approaching trading houses and banks to set up a special-purpose company for the development of the jetliner.
However, negotiations have been slow and little progress has been made on the establishment of the proposed special-purpose company…..more...

Japan was prohibited from manufacturing aircraft as part of the surrender deal from WWII…

“The existing economic basis of Japanese military strength must be destroyed and not be permitted to revive.

Therefore, a program will be enforced containing the following elements, among others; the immediate cessation and future prohibition of production of all goods designed for the equipment, maintenance, or use-of any military force or establishment; the imposition of a ban upon any specialized facilities for the production or repair of implements of war, including naval vessels and all forms of aircraft”

http://www.ibiblio.org/pha/policy/1945/450906b.html