Japan Approves Record ¥9tn Defence Budget Amid China Tensions and Space Arms Race Claims
December 26, 2025
Japan’s cabinet has approved a record high defence budget of more than ¥9 trillion ($58 billion), a 9.4% increase from the previous year. This budget supports Japan's plan to double its annual defence spending to 2% of GDP by the fifth year. The spending aims to boost strike-back abilities and coastal defences with surface-to-ship missiles and unmanned drones.
Japan will invest ¥100 billion in deploying massive unmanned air, sea-surface, and underwater drones for surveillance and defence under a system named "Shield", expected by March 2028. Officials say this is to strengthen coastal protection amid rising tensions with China.
Relations between Japan and China worsened after Japan’s Prime Minister Sanae Takaichi said Japan might become involved militarily if China attacks Taiwan. China responded with strong diplomatic and economic actions. Takaichi did not retract her remarks and Japan says these do not change defence policies.
China criticized Japan’s recent space technology developments, some in partnership with the US, accusing Japan of "accelerating the weaponisation and militarisation of space, and fuelling a space arms race." Japanese rockets have launched satellites for GPS and intelligence since March 2023.
China’s Defence Ministry spokesperson Zhang Xiaogang said, "Given that Japan’s vicious militarists once launched sneak attacks and that the country is now taking an offensive space policy, it is hardly surprising that there are growing concerns of another Pearl Harbor scenario."
Japan’s 2015 constitutional amendment allows collective self-defence in some cases, even if Japan is not directly attacked. Its current strategy sees China as its biggest security challenge, seeking close cooperation with the US.
Meanwhile, China also criticized the US for its support of Taiwan, after a $10 billion US arms sale to Taipei and the US Senate's approval of up to $1 billion for Taiwan security cooperation in 2026. Zhang accused the US of "emboldening Taiwan independence" and harming peace.
China is modernizing its military to be able to take Taiwan by force. Taiwan’s people largely reject reunification with China. Recently, Chinese aircraft locked radar on Japanese planes near southwest Japan, a highly provocative move that led to protests from Tokyo.
Zhang said China’s defence spending is "reasonable and moderate" and its actions comply with international law.
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Tags:
Japan Defense Budget
China Tensions
Space Arms Race
Taiwan
Us taiwan relations
Japanese Military
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