Japan Approves 8.7 Trillion Yen For Defense Boost Amid Threats from China, North Korea, Russia

• Japan’s cabinet has approved a record defense budget of 8.7 trillion yen for 2025, marking the third year of its five-year military buildup.
• The budget includes 940 billion yen for the “standoff” defense system, which includes long-range missiles and satellite constellation.
• Under its defense strategy, Japan aims to double its annual military spending to around 10 trillion yen, making it the world’s No. 3 military spender.
• Japan is also focusing on unmanned weapons and artificial intelligence to compensate for the declining number of service members.

In a significant move, the Japanese cabinet has approved a record defense budget of 8.7 trillion yen for 2025. This decision marks the third year of Japan’s ongoing five-year military buildup under the national security strategy adopted in 2022. The move is seen as Japan’s accelerated effort to fortify itself against growing threats from China, North Korea, and Russia. The defense spending is part of the more than 115 trillion yen national budget bill, which requires parliamentary approval by March to be enacted.

The budget allocation includes 940 billion yen for the so-called standoff defense system, which includes long-range missiles, satellite constellation, and other arsenals. Japan is preparing to deploy U.S.-made Tomahawks late in the fiscal year 2025 as part of its ongoing effort to acquire strike-back capability with long-range missiles that can hit distant targets. The cost includes 1.8 billion yen for the purchase and addition of equipment to launch Tomahawks from an Aegis-class destroyer.

To reinforce its missile defense system, Japan plans to spend another 533 billion yen that includes purchases of interceptors and a mobile reconnaissance radar to be placed on Okinawa, where more than half of about 50,000 American troops are based.

Japan’s Defense Strategy and Military Buildup

Under the defense strategy, Japan aims to eventually double its annual military spending to around 10 trillion yen, making it the world’s No. 3 military spender after the United States and China. In a bid to strengthen its largely domestic defense industry, Japan is pushing for joint development and promoting foreign sales. For 2025, Japan plans to spend 314.8 billion yen to build three 4,800-ton new multi-purpose compact destroyers, or FFM, that require 90 crew members, less than half the crew size currently needed as a result of automation and labor-saving design. These are upgraded Mogami-class destroyers equipped with long-range missiles, reinforced anti-submarine warfare functions, and high stealth performance.

The destroyers built by the Mitsubishi Heavy Industries is one of two candidates shortlisted by Australia for its Sea 3000 frigate project and is competing against Germany ’s MEKO A-200 offered by Thyssenkrupp Marine Systems. Japan would jointly develop and produce frigates for the Australian Navy. This project not only serves to deepen cooperation between Japan and Australia but also contributes to enhancing Japan’s warship capabilities.

Japan, whose only treaty ally is the United States, has developed close ties with Australia and considers it a semi-ally as they face China’s growing threat in the region.

Japan’s Future Defense Plans and International Relations

Japan is desperate to win the deal after it lost to France in the 2016 submarine deal with Australia. Prime Minister Shigeru Ishiba’s cabinet has already approved foreign sales of Mogami-class FFM to Australia in hopes it is selected, and set up a joint panel of government and industrial officials to step up its campaign drive to Canberra.

Japan is also jointly developing a next-generation fighter jet with Britain and Italy for deployment in 2035 and allocated 108.7 billion yen in the budget for the project. As the country’s population continues to shrink, Japan focuses on unmanned weapons and artificial intelligence to make up for the declining number of service members and allocated 111 billion yen.

This move by Japan is reminiscent of the Cold War era when nations were engaged in an arms race to fortify their defense capabilities. The escalating tensions in the Indo-Pacific region, particularly with China’s growing military assertiveness, have led to a renewed focus on defense spending and military modernization among regional powers.