Japan Approves Record Defence Budget Amid Rising Tensions with China
Japan's cabinet has approved a record-high defence budget exceeding ¥9 trillion (approximately $58 billion) for the next fiscal year, marking a 9.4% increase from the previous year. This budget forms part of a five-year plan aimed at doubling arms spending to reach 2% of GDP.
The allocation prioritises strengthening strike-back capabilities and coastal defences, including investments in surface-to-ship missiles and unmanned drone arsenals. Notably, ¥100 billion has been set aside to deploy massive unmanned drones under the Shield system by March 2028.
This move comes amid escalating tensions with China, which has accused Japan of fuelling a space arms race following Tokyo's recent space-related developments, some conducted jointly with the United States. Japanese Prime Minister Sanae Takaichi stated that Tokyo would likely become militarily involved if China attacked Taiwan, statements that Beijing condemned and responded to with diplomatic and economic retaliations.
China's defence ministry criticised US support for Taiwan, highlighting over $10 billion in US arms sales and a US NDAA provision allocating up to $1 billion in 2026 for Taiwan-related security cooperation. China views these actions as emboldening Taiwan independence and accelerating the militarisation of space.
Japan's security strategy identifies China as its biggest strategic challenge and seeks closer security cooperation with the US. However, constitutional restrictions on the use of force remain in place, with a 2015 amendment allowing limited collective self-defence.
