Japan Seeks Economic Growth through Military Buildup

Japan's government is linking its military buildup to economic growth, arguing that investing in defense can benefit the wider economy and people's lives. The claim comes in the country's latest defense white paper, which calls for Japan to harness technology, fund startups, and use more commercial components in weapons production.

The annual assessment identifies neighboring China, Russia, and North Korea as major threats, but also sees an opportunity for Japan to drive economic growth through strategic state spending. Prime Minister Sanae Takaichi's administration is preparing a new national security strategy that may call for further defense spending increases.

Japan has already assembled a record 122.3 trillion yen budget for the year to March 2027, with a significant portion going towards missiles capable of striking targets over 1,000 km away. The government is expected to finance any further military expansion without adding pressure on Japan's public finances, although Prime Minister Takaichi has yet to explain how this would be achieved.

Beijing reacted furiously in November when Prime Minister Takaichi said Japan could deploy its Self-Defense Forces if a Chinese attack on Taiwan also threatened Japan's survival. The defense white paper describes China's military activities as a 'serious concern' to Japan and the international community, representing Japan's greatest strategic challenge.