Japan Targets Record Defense Spend as China Pressure Grows
Defense Ministry wants more drones and missiles, but pace of spending increases might look slow to Washington
Aug. 31, 2026 The Wall Street Journal
Japan plans to shift more of its military spending toward drones and missiles and build up supplies of ammunition, as officials eye a record defense budget for the next fiscal year.
Japan’s Ministry of Defense said Monday that it is seeking 8.9 trillion yen, or around $55.6 billion, for the year beginning in April.
That amount doesn’t include extra spending related to the U.S. military presence in Japan, which, when finalized, would likely push the total sum beyond the record 9 trillion yen budgeted for the current fiscal year.
Still, the modest uplift proposed for fiscal 2027 might frustrate Trump administration officials eager to see U.S. allies make rapid progress toward spending 3.5% to 5% of gross domestic product on defense.
Prime Minister Sanae Takaichi increased the fiscal 2026 defense budget by 3.8% year-over-year, taking Japanese military spending to 2% of annual GDP two years ahead of schedule.
Even after that increase, Japan still lags behind other U.S. allies. Taiwan floated a 2027 defense budget of almost 4% of GDP. South Korea spent around 2.3% of GDP in 2025, and is aiming to lift that to 3.5% by 2035.
Behind the rising spending among U.S. allies in Asia is not just pressure from Washington but the growing military might of China and other adversaries including North Korea and Russia.
Japanese defense officials describe the security environment surrounding their country as the most severe since World War II, noting the growing frequency of Chinese and Russian ships sailing close to Japanese territorial waters and warplanes skirting Japan’s airspace.
The U.S., South Korea and Japan are set to undertake joint military drills next week, a show of regional unity after President Trump rattled allies by scaling back bilateral exercises with South Korea in August. The trilateral exercise, called Freedom Edge, will test allies’ capabilities at sea and in the air.
A spokesperson for North Korea’s Foreign Ministry called the exercise a threat to North Korea and the wider region in a statement Monday.
In its budget request, Japan’s Ministry of Defense highlighted the need for effective deterrence but also the need for Japan to be prepared for a long conflict if fighting were to erupt in Asia, citing the lessons of Ukraine.
“Preventing conflicts before they arise, as well as withstanding a protracted conflict, are essential for strengthening Japan’s defense capabilities,” the ministry said. It asked for cash to finance purchases of ammunition, guided missiles, transport aircraft and research on autonomous navigation technology.
Like many other governments, Japan is also looking closely at drone technology and similar autonomous systems and how to incorporate them into its defense plans.
At a briefing for reporters, one defense official described U.S. firm Anduril’s Barracuda system, a low-cost flying drone that acts as a kind of cruise missile, as an example of the kind of affordable weapon Japan is considering.
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