Japan Approves Record Defence Budget Amid Rising Tensions with China
Japan's cabinet has approved a record defence budget exceeding ¥9 trillion (approximately $58 billion) for the next fiscal year, marking a 9.4% increase from the previous year. This budget is part of a five-year plan aiming to raise Japan's defence spending to 2% of GDP.
The spending priorities include strengthening strike-back capabilities and coastal defences through surface-to-ship missiles, and developing large unmanned drones for surveillance and defence under a new Shield system planned for March 2028. An allocation of ¥100 billion will be dedicated to these drones.
This budget increase comes amid escalating tensions with China, which has accused Tokyo of fueling a space arms race following Japanese Prime Minister Sanae Takaichi's remarks suggesting potential military intervention if China attacks Taiwan. China's defence ministry criticized Japan’s space technology developments, some conducted in cooperation with the United States, as accelerating the weaponization of space and exacerbating the arms race in this domain.
The broader context of regional security includes significant U.S. support for Taiwan, including over $10 billion in arms sales and a 2026 National Defense Authorization Act authorizing up to $1 billion for Taiwan-related security cooperation. Japan identifies China as its biggest strategic challenge and supports closer security cooperation with the United States, bolstered by a 2015 constitutional amendment permitting limited collective self-defence.
Recent regional tensions were highlighted by an incident where Chinese aircraft locked radar on Japanese jets during drills near southwestern Japan, leading to protests from Tokyo.
