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Japan pitches military buildup as engine for economic growth

Camouflaged members of the Japanese Ground Self-Defense Forces on a UH-1 helicopter during an exercise in suburban Tokyo, accessed on Aug. 4, 2026. (AFP Photo)
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Camouflaged members of the Japanese Ground Self-Defense Forces on a UH-1 helicopter during an exercise in suburban Tokyo, accessed on Aug. 4, 2026. (AFP Photo)
August 04, 2026 09:32 AM GMT+03:00

Japan’s government is portraying its expanding military buildup as both a national security measure and a way to promote economic growth, according to the country’s latest defense white paper reported by Reuters.

The annual assessment says investment in defense production can benefit the wider economy and people’s lives while strengthening Japan’s ability to respond to threats from China, Russia and North Korea.

Japan, whose military activity has been limited for decades by post-war restrictions, should make greater use of technology, support startups and incorporate more commercial components into weapons production, the document said.

The message reflects Prime Minister Sanae Takaichi’s broader policy of using strategic government spending to support economic growth.

Japanese Prime Minister Sanae Takaichi speaks to the media at the Prime Minister’s Office, in Tokyo after a 7.1-magnitude earthquake hit southern Japan, July 28, 2026. (AFP Photo)
Japanese Prime Minister Sanae Takaichi speaks to the media at the Prime Minister’s Office, in Tokyo after a 7.1-magnitude earthquake hit southern Japan, July 28, 2026. (AFP Photo)

Defense investment linked to prosperity

A Defense Ministry presentation document said the white paper emphasizes that defense investment can support both the economy and daily life.

That theme is also reflected in the document’s anime-style cover, which shows a smiling family in a modern cityscape instead of the troops, weapons and military symbols featured on many previous editions.

A Defense Ministry official said the design was intended to present a “futuristic image.”

The focus on defense spending and prosperity comes as Takaichi’s administration prepares a new national security strategy.

Military experts expect the strategy to call for further spending increases, mainly aimed at deterring China from launching a conflict over Taiwan that could also draw Japan into a prolonged war.

Soldiers from the Japan Ground Self-Defense Force taking part in a military review at a training ground in Asaka, Saitama prefecture, October 14, 2018. (AFP Photo)
Soldiers from the Japan Ground Self-Defense Force taking part in a military review at a training ground in Asaka, Saitama prefecture, October 14, 2018. (AFP Photo)

China described as Japan’s greatest strategic challenge

The white paper said China’s military activities and other actions were a serious concern for Japan and the international community and represented Japan’s greatest strategic challenge.

Beijing reacted angrily in November after Takaichi said Japan could deploy its Self-Defense Forces if a Chinese attack on Taiwan also threatened Japan’s survival.

China demanded that she withdraw what it described as an “egregious” statement.

Funding pressures accompany military expansion

Tokyo has combined tax increases, spending reforms and one-time revenues to finance Japan’s largest military buildup since World War II.

The expansion has raised defense-related spending to 2% of gross domestic product.

Takaichi has not clearly explained how her government would finance a further increase without placing additional pressure on Japan’s already strained public finances.

Her government secured a record 122.3 trillion yen budget for the year ending in March 2027.

It later approved a 3.1 trillion yen supplementary package to protect households and businesses from higher energy costs, highlighting competing demands on government spending.

The Japanese national flag is seen at the Bank of Japan (BOJ) headquarters in Tokyo, April 28, 2023. (AFP Photo)
The Japanese national flag is seen at the Bank of Japan (BOJ) headquarters in Tokyo, April 28, 2023. (AFP Photo)

Missiles and unmanned weapons expected to receive funding

A large share of Japan’s recent defense spending has gone toward missiles capable of striking targets more than 1,000 kilometers, or 621 miles, away.

A significant portion of any future increase is expected to fund drones and other unmanned weapons similar to those used extensively by Ukraine in its war with Russia.

August 04, 2026 09:32 AM GMT+03:00
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