Japan’s cabinet approves record defense budget amid tensions with China

Japan’s Cabinet has approved a record defense budget of 9.04 trillion yen ($58 billion) for fiscal 2026 as tensions with China continue to spiral.

Approved on Friday, the draft budget for fiscal 2026, beginning in April, which includes costs related to hosting US military bases, surpasses the previous record of 8.7 trillion yen ($55.7 billion).

It also marks the fourth year of Japan’s five-year 43-trillion-yen ($275 billion) defense buildup plan, under which 100.1 billion yen ($641 million) has been earmarked for developing the “Shield” layered coastal defense system incorporating aerial, surface, and underwater vehicles.

The country is also increasing its investment in drone technology, including 1.1 billion yen ($7 million) to assess long-endurance drones.

To strengthen its space capabilities, Japan plans to rebrand the Air Self-Defense Force as the Air and Space Self-Defense Force, allocating another 1.1 billion yen to acquire equipment to monitor satellite interference.

The budget also includes 30.1 billion yen ($193 million) for procuring hypersonic guided missiles as a counterattack capability.

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Earlier, the Cabinet of Prime Minister Sanae Takaichi also approved a draft initial state budget totaling 122.3 trillion yen ($783 billion) for the fiscal year starting next April, the largest in the country’s history.

The significant defense buildup by Japan comes as tensions with China have escalated since November 7, when Takaichi said a Chinese attack on Taiwan could legally constitute a “survival-threatening situation.”

She said that Japan would probably become militarily involved if China attacked Taiwan.

On Thursday, China’s Defense Ministry told a regular press briefing that Japan’s recent space technology developments – some of which are in cooperation with the US – were “accelerating the weaponisation and militarisation of space, and fuelling a space arms race.”

The ministry further blasted the US over its continued support for Taiwan, a week after it approved a massive US arms sale to Taipei of more than $10 billion.

The US does not officially recognize Taiwan diplomatically but remains its most important supporter, using it as a tool to pressure China.

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Last week, the US Senate passed the National Defense Authorization Act, which includes authorization to spend up to $1 billion in 2026 on Taiwan-related military cooperation.

Later on Saturday, Chinese Defense 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.”

Zhang also accused the US of “emboldening Taiwan independence” activity and undermining peace and stability.

Japan’s security strategy identifies China as the country’s biggest strategic challenge and calls for a more assertive role in its security cooperation with the US.

Earlier this month, Japan scrambled fighter jets after Russian and Chinese aircraft conducted an extended joint patrol around its territory, heightening concerns over simmering tensions between Tokyo and Beijing.

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