Japan Boosts Defense Spending to Record Levels

Japan’s cabinet has approved a record-high defense budget as tensions with China continue to rise. Beijing recently accused Tokyo of “fuelling a space arms race.”

The proposed defense budget for the next fiscal year is over ¥9tn ($58bn),a 9.4% increase from the current budget ending in April. This marks the fourth year of Japan’s five-year plan to double annual arms spending to 2% of its GDP.

This budget prioritizes strengthening Japan’s ability to strike back and bolstering coastal defenses. Key investments include surface-to-ship missiles and unmanned systems. Officials say Japan will allocate ¥100bn to deploy a “massive” network of unmanned drones – in the air, at sea, and underwater – for surveillance and defense. This system, called “Shield,” is planned for implementation by March 2028.

The increased spending comes as disagreements between China and Japan intensify. Beijing has repeatedly protested Japan’s defense policies and actions.