Tokyo, December 26, 2025
Japan’s Cabinet on Friday approved a record defense budget exceeding ¥9 trillion ($58 billion) for the upcoming fiscal year, signaling a major expansion of the country’s military capabilities amid rising regional security tensions.
The budget plan for fiscal year 2026, which begins in April, represents a 9.4 percent increase over 2025 spending. It marks the fourth year of Japan’s ongoing five-year defense buildup, aimed at doubling annual military spending to 2 percent of gross domestic product (GDP).
Strategic Shift Amid China-Taiwan Tensions
The increase comes as Japan faces escalating tensions with China, particularly over Taiwan. In November, Japanese Prime Minister Sanae Takaichi stated that Japan’s Self-Defense Forces could intervene if China were to take military action against Taiwan — a self-governed island claimed by Beijing.
Under pressure from the United States, the Takaichi government has pledged to reach the 2 percent GDP defense spending target by March, two years ahead of schedule. Japan also plans to revise its national security and defense policies by December 2026 to further strengthen its military posture.
Focus on Cruise Missiles and Unmanned Weapons
A major portion of the budget prioritizes long-range cruise missiles and unmanned weapons systems, aimed at reinforcing coastal and southwestern island defenses.
This marks a significant departure from Japan’s post–World War II security doctrine, which restricted the use of force strictly to self-defense. The enhanced capabilities will allow Japan to strike enemy bases from long distances, reflecting a broader shift toward counterstrike readiness.
Japan’s current security strategy, adopted in 2022, identifies China as its most significant strategic challenge and calls for a more proactive role for the Self-Defense Forces under the country’s security alliance with the United States.
Type-12 Missile Deployment Planned
The new defense plan allocates more than ¥970 billion ($6.2 billion) to strengthen Japan’s “standoff missile” capabilities.
This includes:
¥177 billion ($1.13 billion) for the procurement of domestically upgraded Type-12 surface-to-ship missiles
Missile range of approximately 1,000 kilometers (620 miles)
The first batch of Type-12 missiles will be deployed by March in Kumamoto Prefecture, located in southwestern Japan — one year ahead of schedule, as Tokyo accelerates missile production.
Why Japan Is Investing in Drones
The government emphasized the importance of unmanned weapons systems due to Japan’s aging population, declining workforce, and limited military personnel. Officials believe drones and autonomous systems are essential to maintaining operational strength with fewer soldiers.
Regional Implications
Japan’s expanding military capabilities underscore a broader transformation in East Asia’s security landscape, as nations respond to growing geopolitical competition and regional instability.
