Japan Approves Record Defence Budget Amid Rising Tensions with China
Japan's cabinet has approved a record defence budget for the next fiscal year, exceeding ¥9 trillion (approximately $58 billion), marking a 9.4% increase from the previous year. This budget increase is part of a five-year program aimed at doubling annual arms spending to 2% of the country's GDP, a plan currently in its fourth year.
The funds prioritise enhancing Japan's strike-back capabilities and coastal defences, including investments in surface-to-ship missiles and unmanned arsenals. Notably, ¥100 billion is allocated to deploy a 'massive' fleet of unmanned air, sea-surface, and underwater drones under a surveillance and defence system named 'Shield,' which is planned to commence in March 2028.
This defence budget announcement occurs amid escalating tensions between Japan and China. Beijing has accused Tokyo of fuelling a space arms race after Japanese Prime Minister Sanae Takaichi suggested that Japan might militarily intervene if China attacked Taiwan. China's defence ministry criticized Japan's developments in space technology as militarisation of space and highlighted US assistance in these efforts. Moreover, Beijing accuses the United States of emboldening Taiwan's push for independence through arms sales and increased cooperation.
In the United States, the National Defense Authorization Act authorises up to $1 billion in 2026 for security cooperation related to Taiwan. Japan's postwar constitution restricts the use of force, but a 2015 amendment permits collective self-defence in specific circumstances. Tokyo seeks to pursue a more assertive security stance alongside the United States as regional dynamics evolve.
