Japan’s government is responding to China’s growing desire for power and the threat from North Korea with record spending on national defense.
December 26, 2025, 07:03December 26, 2025, 07:03
The draft budget for the fiscal year 2026, which begins on April 1, provides for defense spending of around nine trillion yen (49 billion euros) – around 3.5 percent more than in the current fiscal year. Around 100 billion yen are earmarked for the construction of a system called “Shield” to protect Japan’s long coastline and remote islands, for example against ships, submarines and drones. One focus is on the use of drones.
Heightened tensions with China
The massive military buildup comes against the backdrop of heightened tensions with neighboring China. The most recent reason was statements by the national conservative Prime Minister of Japan regarding Taiwan. Sanae Takaichi said in November that a Chinese attack on the democratic island republic of Taiwan would constitute a “life-threatening situation” for Japan, which could lead to the exercise of the right to self-defense.
The Japanese Self-Defense Forces.Image: keystone
Beijing responded with sharp criticism as well as travel warnings, canceled flight connections and a ban on imports of Japanese seafood. Japan’s plan to station missiles on the island of Yonaguni, almost 110 kilometers from Taiwan, also met with significant criticism. Tokyo recently protested because Chinese military aircraft were said to have targeted Japanese fighter jets with special target tracking radar near the southern Japanese island group of Okinawa. China disagreed.
High national debt
Japan’s proposed budget for the coming fiscal year totals a record 122.3 trillion yen. In view of the rapid aging of society, this is also intended to finance increasing social spending. Despite record tax revenues, the government has to issue additional government bonds to finance the national budget. Takaichi’s aggressive spending policies have put pressure on the yen against major currencies. Japan’s national debt is already more than twice the country’s annual gross domestic product (GDP). (sda/dpa/cst)
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