Japan Approves Record Defence Budget Amid Rising Tensions with China
Japan's cabinet has approved a record defence budget exceeding ¥9 trillion (~$58 billion) for the next fiscal year, marking a 9.4% increase from the previous year. This budget forms part of a five-year program aimed at doubling annual arms spending to 2% of Japan's GDP.
The spending priorities include enhancing strike-back capabilities and coastal defences through the deployment of surface-to-ship missiles and unmanned systems. Approximately ¥100 billion is allocated to a "Shield" programme intended to deploy mass unmanned air, sea-surface, and underwater drones for surveillance and defence by March 2028.
This move comes amid heightened tensions with China. Beijing has accused Tokyo of fuelling a space arms race following Prime Minister Sanae Takaichi's suggestion that Japan could militarily intervene if China attacked Taiwan. China's defence ministry criticized Japan's space-related developments as militarisation and warned of potential security risks, referencing concerns about a Pearl Harbor-style scenario.
While Japan's postwar constitution restricts the use of force, a 2015 amendment permits collective self-defence under certain circumstances. The current security strategy prioritizes China as the biggest challenge and expands security cooperation with the United States.
The US has increased support for Taiwan, including a more-than-$10 billion arms sale and a provision in the National Defense Authorization Act authorizing up to $1 billion in 2026 for Taiwan-related security cooperation. Recent joint military drills involving Japan’s F-15s and a US B-52 bomber have taken place over the Sea of Japan.
