Japan's defence ministry seeks record budget as it faces growing threat from China

Japan seeks record budget to fortify deterrence against China, focusing on unmanned weapons, AI, and military modernisation.

Japan’s Defence Ministry Friday (August 30, 2024) sought a record 8.5 trillion-yen (USD 59 billion) budget for the next year to fortify its deterrence on southwestern islands against China’s increasing threat while focusing on unmanned weapons and AI to make up for the declining number of servicemembers as a result of the country’s shrinking population.

The ministry’s request for 2025 marks the third year of Japan’s rapid five-year military buildup plan under the government’s ongoing security strategy. Japan aims to spend 43 trillion yen (USD 297 billion) through 2027 to double its annual military spending to around 10 trillion yen, making it the world’s third-largest military spender after the United States and China.

The budget request was approved at the Defence Ministry meeting Friday (August 30, 2024) ahead of a submission to the Finance Ministry for negotiations through December.

Japan has been rapidly building up the defence of the southwestern region in recent years amid China’s growing military threats and tension in the regional seas.

China has escalated clashes with the Philippine coast guards in disputed waters in the South China Sea and sent a fleet of coast guard boats to routinely violate territorial waters around Japanese-controlled disputed islands in the East China Sea that Beijing also claims.

A hefty 970 billion yen (USD 6.7 billion) of the budget request for 2025 covers the cost of bolstering strike-back capability with the development and purchases of long-range missiles and equipment for their launch, including from an Aegis-class destroyer. About one-third of it goes to a satellite constellation aimed at bolstering the capability to detect missile-related activity, as North Korea, China and Russia develop hypersonic missiles that are harder to detect and track.

While pushing military buildup, Japan must deal with a shrinking troop size and is focusing on developing and buying more drones for surveillance and combat, requesting 103 billion yen (USD 710 million). It also seeks 314 billion yen (USD 2.17 billion) to build three new multi-purpose compact destroyers that require 90 crewmembers, less than half the crew size currently needed.