Japan’s cabinet approves record defence budget amid escalating China tensions

Japanese strike-back capabilities and coastal defences to be boosted while Beijing accuses Tokyo of fuelling a ‘space arms race’

Japan’s cabinet has approved a record high defence budget as tensions with China continue to spiral, with Beijing this week accusing Tokyo of “fuelling a space arms race”.

The draft defence budget for the next fiscal year – approved on Friday – is more than ¥9tn ($58bn) and 9.4% bigger than the previous budget, which will end in April. The increase comes in the fourth year of Japan’s five-year program to double its annual arms spending to 2% of GDP.

The budget plan focuses on fortifying strike-back capability and coastal defences with surface-to-ship missiles and unmanned arsenals. To defend the coasts, Japan will spend ¥100bn yen to deploy “massive” unmanned air, sea-surface and underwater drones for surveillance and defence under a system called “Shield” planned for March 2028, defence ministry officials said.