Japan’s cabinet has approved a record defence budget amid rising tensions with China, as Beijing accused Tokyo this week of “fuelling a space arms race”.
The draft budget for the next financial year, approved on Friday, exceeds ¥9tn (£46bn), marking a 9.4% increase on the current year’s spending, which ends in April. It represents the fourth year of Japan’s five-year plan to double defence spending to 2% of gross domestic product.
The budget prioritises strengthening counterstrike capabilities and coastal defences, including the deployment of surface-to-ship missiles and unmanned systems. Japan plans to spend ¥100bn on large-scale unmanned air, surface and underwater drones for surveillance and defence.
Defence ministry officials said the drone programme, known as “Shield”, is expected to be operational by March 2028 and will play a key role in monitoring and protecting Japan’s coastal areas.
The spending increase comes against a backdrop of worsening relations between Tokyo and Beijing. China has long criticised Japan’s military expansion, but tensions escalated sharply last month after Japan’s prime minister, Sanae Takaichi, said Japan would likely become militarily involved if China attacked Taiwan.
The remarks triggered a strong reaction from Beijing, including diplomatic protests and economic measures. Takaichi has refused to retract her comments, while her government has insisted they do not represent a shift in Japan’s defence policy.
Chinese officials have continued to criticise Japan publicly, often responding sharply to new military or security announcements.
At a regular press briefing on Thursday, China’s defence ministry accused Japan of accelerating the militarisation of space through recent technological developments, some carried out in cooperation with the United States.
Japanese media reports say Tokyo has launched several rockets since March 2023, carrying cargo spacecraft and satellites used for navigation and intelligence purposes.
China’s defence ministry spokesperson, Zhang Xiaogang, said Japan’s actions had raised serious concerns, citing its wartime history and warning of the risk of renewed military aggression.
Japan’s postwar constitution prohibits the use of force to settle international disputes. However, a 2015 reinterpretation, passed under former prime minister Shinzo Abe, allows Japan to exercise collective self-defence in limited circumstances.
Japan’s current national security strategy describes China as its greatest strategic challenge and calls for closer security cooperation with the US.
China has also criticised Washington over its continued support for Taiwan. Last week, the US approved an arms sale to Taipei worth more than $10bn, drawing sharp condemnation from Beijing.
Although the US does not formally recognise Taiwan, it is the island’s most important military supporter and is legally required to help it maintain its defences. Earlier this month, the US Senate passed legislation authorising up to $1bn in Taiwan-related security cooperation in 2026.
Zhang accused Washington of encouraging pro-independence sentiment in Taiwan and undermining regional stability.
China is in the midst of a major military modernisation programme, aimed in part at strengthening its ability to take control of Taiwan by force. Beijing claims Taiwan as part of its territory, a position rejected by most people on the island.
China’s expanding naval and air forces have increasingly operated beyond its borders, leading to a series of confrontations with other militaries in the region.
Earlier this month, Chinese aircraft reportedly locked radar onto Japanese planes during drills near south-western Japan, an action widely viewed as a serious escalation. Japan lodged a formal protest.
Zhang said China’s defence spending was reasonable and that its military activities were conducted in full compliance with international law.
