• Japan's Cabinet approves a record defense budget plan exceeding ¥9 trillion (US$58 billion) for fiscal year 2026.
• The budget aims to strengthen missile and drone capabilities in response to tensions with China.
• Japan plans to meet a military spending target of 2% of GDP, two years ahead of schedule.
• Concerns over China have escalated following provocative military drills and increased naval presence near Japan.
• Joint development projects with allies aim to boost Japan's domestic defense industry.

Japan's Cabinet has approved a **record defense budget plan** exceeding ¥9 trillion (US$58 billion) for the upcoming fiscal year, aiming to enhance its military capabilities amidst escalating tensions with China, according to Channel News Asia, Al Jazeera, and Los Angeles Times.

The budget, which marks a **9.4% increase** from 2025, is part of Japan's five-year program aimed at doubling military spending to 2% of GDP. Prime Minister Sanae Takaichi underscored that Japan’s military may intervene if China acts against Taiwan, comments that stirred diplomatic tensions with Beijing, according to Channel News Asia and Los Angeles Times.

The new budget allocates more than ¥970 billion (approximately $6.2 billion) to strengthen Japan's **"standoff" missile capabilities**, including a ¥177 billion (about $1.13 billion) investment in new Type-12 surface-to-ship missiles with a range of 1,000 km. These enhancements signal a significant shift from Japan's post-World War II defense policy, which traditionally emphasized self-defense, according to Al Jazeera and Los Angeles Times.

Japan's Defense Ministry plans to employ **unmanned weapons systems** due to projected difficulties in personnel recruitment caused by an **aging population**. A significant portion of the budget, ¥100 billion (approximately $640 million), is allocated for deploying **drones** for coastal surveillance, aimed for operational status by March 2028 under the SHIELD program. To expedite acquisition, Japan may rely on imported technology from countries like Turkey or Israel, according to Channel News Asia, Al Jazeera, and Los Angeles Times.

The budget approval comes amid increased **Chinese military activity** near Japan, including drills where Chinese aircraft locked radar onto Japanese planes, raising alarms in Tokyo. A new office will be established to monitor and address Chinese operations in the Pacific, indicating a proactive approach to regional security, according to Channel News Asia and Los Angeles Times.

Other key investments include over ¥160 billion (about $1 billion) for the collaborative development of next-generation fighter jets alongside Britain and Italy, with deployment slated for 2035. This emphasizes Japan's commitment to revitalizing its domestic defense industry and enhancing international military collaboration, according to Al Jazeera and Los Angeles Times.