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Japan's Record Defense Spending Amid China, North Korea Tensions

12/13/2025

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Summary

Story summary

The draft budget for fiscal 2026, part of a ¥43 trillion expansion, signals record defense spending amid tensions with China and North Korea.
The plan includes investments in hypersonic missiles and a new coastal defense initiative.
Prime Minister Sanae Takaichi aims to raise defense spending to 2% of GDP by fiscal 2025, and the United States urges 3.5%.

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Story summary

The draft budget for fiscal 2026, part of a ¥43 trillion expansion, signals record defense spending amid tensions with China and North Korea.
The plan includes investments in hypersonic missiles and a new coastal defense initiative.
Prime Minister Sanae Takaichi aims to raise defense spending to 2% of GDP by fiscal 2025, and the United States urges 3.5%.