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Japan Braces for U.S. Demands of Additional Defense Spending Increases; Govt to Monitor Outcomes for NATO Members
Japan Braces for U.S. Demands of Additional Defense Spending Increases; Govt to Monitor Outcomes for NATO Members

Yomiuri Shimbun

time27-06-2025

  • Business
  • Yomiuri Shimbun

Japan Braces for U.S. Demands of Additional Defense Spending Increases; Govt to Monitor Outcomes for NATO Members

The government is bracing for the administration of U.S. President Donald Trump to demand that Japan significantly boost its defense spending, in the wake of NATO members agreeing to do so at a recent summit. Concerned that such an increase would require huge outlays and spark public backlash, the government intends to emphasize to the United States that Japan is already proactively making efforts to strengthen its defense capabilities. It plans to begin fully considering this matter, including details such as the size of future defense budgets and where funding for such expenditures could come from, after next month's House of Councillors election. At a press conference Thursday, Chief Cabinet Secretary Yoshimasa Hayashi said the government was 'closely observing' the outcomes of the NATO decision, which he described as a 'significant move.' However, Hayashi added, 'The substance of defense capabilities is what's important, not the amount spent.' NATO member states agreed to raise their defense spending target to 5% of gross domestic product, a major increase from the previous benchmark of 2%. Based on the Defense Buildup Program and other policies, Japan's government aims to increase security-related expenditure to an amount equivalent to 2% of the fiscal 2022 GDP in fiscal 2027. In addition to the conventional defense budget, this figure would also include costs for expenditures in four key related fields such as building public infrastructure and cybersecurity. Japan's security-related spending has been steadily growing and reached about 1.8% in fiscal 2025. The government has been busily working behind the scenes to steer the United States away from issuing an explicit demand for greater defense spending since Trump returned to the White House in January. 'If the government decided to expand this spending further due to pressure from the United States, public opinion would be critical,' a senior Foreign Ministry official told The Yomiuri Shimbun. The government has repeatedly explained to Washington that progress is being made toward achieving the 2% target and sought its understanding on this approach. Given the new target rolled out by NATO members, a senior government official said, 'There's no doubt the United States will step up its demands.' In a statement issued on June 20, ahead of the NATO summit meeting, the U.S. Defense Department said U.S. allies in Asia, including Japan, should also aim to increase their defense spending to 5% of GDP. Some observers believe Prime Minister Shigeru Ishiba decided to skip the NATO summit to avoid having any demands thrust directly at him by the United States. Discussions on the formulation of the next Defense Buildup Program are ongoing among expert panels at the Defense Ministry. There is a widespread view within the ministry that increased spending will be inevitable given the severe security environment surrounding Japan. There is support within the ruling Liberal Democratic Party for settling this issue before the current program expires in fiscal 2027. 'A review ahead of schedule also must be considered,' former Defense Minister Minoru Kihara said. The cabinet of then Prime Minister Fumio Kishida decided to increase income taxes to generate the financial resources required to achieve the 2% target. However, the timing of the tax hike has yet to be determined. Accordingly, securing funds needed to accommodate any further increase in security-related spending will not be easy.

Panel to propose Japan raise defense spending above 2% of GDP
Panel to propose Japan raise defense spending above 2% of GDP

Japan Today

time16-06-2025

  • Business
  • Japan Today

Panel to propose Japan raise defense spending above 2% of GDP

A Defense Ministry panel is set to propose that the government consider raising defense spending beyond the current goal of 2 percent of gross domestic product, sources close to the matter said. In a draft proposal to be presented to the government soon, the panel, set up in February 2024, also calls for discussions on deploying submarines equipped with long-range missiles, including nuclear-powered ones, to strengthen the country's deterrence capability, the sources said. It remains unclear how the proposal will be reflected in Japan's defense policy, as questions remain over how to fund a larger budget and whether using nuclear power for defense purposes would conflict with the country's policy of peaceful atomic energy use. The government "should not hesitate to pursue the further strengthening of defense capabilities after the achievement" of the current target to have defense-related spending account for 2 percent of GDP, the panel says in the draft proposal, according to the sources. The panel says submarines that enable Japan to strike from beyond an enemy's missile range would significantly enhance the country's deterrence capability. The government should discuss all possible options for propulsion systems, including nuclear power for the submarines, "without taboos," the panel says. The panel, chaired by Sadayuki Sakakibara, the former chairman of the Japan Business Federation, was set up to discuss how the country's defense capabilities should be bolstered in line with its current defense buildup plan. The plan, known as the Defense Buildup Program, allocates 43 trillion yen over five years through March 2028, aiming for defense spending to reach 2 percent of GDP in fiscal 2027. Japan's annual defense budget had long been capped at around 1 percent of GDP. The program was adopted in December 2022 as part of three key security documents that marked a major shift in defense policy for a country with a pacifist Constitution, including a plan to acquire strike capabilities that could reach an adversary's territory. "It is necessary to make efforts to achieve the 2 percent target ahead of schedule and compile the next defense strategy and the buildup plan," the panel says in the draft proposal. The panel, made up of experts in security, the economy, and science and technology, also calls for the full-fledged introduction of unmanned defense equipment using cutting-edge artificial intelligence technologies, the sources said. The government should consider using unmanned aircraft for continuous day-and-night aerial monitoring, the panel says, following a May incident in which a Chinese military helicopter entered Japanese airspace near the Japanese-administered Senkaku Islands in the East China Sea, which are claimed by Beijing. © KYODO

Panel to propose Japan weigh defense spending above 2% of GDP
Panel to propose Japan weigh defense spending above 2% of GDP

Kyodo News

time15-06-2025

  • Business
  • Kyodo News

Panel to propose Japan weigh defense spending above 2% of GDP

KYODO NEWS - 6 hours ago - 22:01 | All, Japan A Defense Ministry panel is set to propose that the government consider raising defense spending beyond the current goal of 2 percent of gross domestic product, sources close to the matter said Sunday. In a draft proposal to be presented to the government soon, the panel, set up in February 2024, also calls for discussions on deploying submarines equipped with long-range missiles, including nuclear-powered ones, to strengthen the country's deterrence capability, the sources said. It remains unclear how the proposal will be reflected in Japan's defense policy, as questions remain over how to fund a larger budget and whether using nuclear power for defense purposes would conflict with the country's policy of peaceful atomic energy use. The government "should not hesitate to pursue the further strengthening of defense capabilities after the achievement" of the current target to have defense-related spending account for 2 percent of GDP, the panel says in the draft proposal, according to the sources. The panel says submarines that enable Japan to strike from beyond an enemy's missile range would significantly enhance the country's deterrence capability. The government should discuss all possible options for propulsion systems, including nuclear power for the submarines, "without taboos," the panel says. The panel, chaired by Sadayuki Sakakibara, the former chairman of the Japan Business Federation, was set up to discuss how the country's defense capabilities should be bolstered in line with its current defense buildup plan. The plan, known as the Defense Buildup Program, allocates 43 trillion yen ($298 billion) over five years through March 2028, aiming for defense spending to reach 2 percent of GDP in fiscal 2027. Japan's annual defense budget had long been capped at around 1 percent of GDP. The program was adopted in December 2022 as part of three key security documents that marked a major shift in defense policy for a country with a pacifist Constitution, including a plan to acquire strike capabilities that could reach an adversary's territory. "It is necessary to make efforts to achieve the 2 percent target ahead of schedule and compile the next defense strategy and the buildup plan," the panel says in the draft proposal. The panel, made up of experts in security, the economy, and science and technology, also calls for the full-fledged introduction of unmanned defense equipment using cutting-edge artificial intelligence technologies, the sources said. The government should consider using unmanned aircraft for continuous day-and-night aerial monitoring, the panel says, following a May incident in which a Chinese military helicopter entered Japanese airspace near the Japanese-administered Senkaku Islands in the East China Sea, which are claimed by Beijing. Related coverage: Philippines, Japan conduct joint exercise in South China Sea Japan draws up 100 bil. yen policy to attract foreign researchers Japan conveys strong concern over China jet flying close to SDF plane

Panel to propose Japan weigh defense spending above 2% of GDP
Panel to propose Japan weigh defense spending above 2% of GDP

Kyodo News

time15-06-2025

  • Business
  • Kyodo News

Panel to propose Japan weigh defense spending above 2% of GDP

KYODO NEWS - 3 minutes ago - 22:01 | All, Japan A Defense Ministry panel is set to propose that the government consider raising defense spending beyond the current goal of 2 percent of gross domestic product, sources close to the matter said Sunday. In a draft proposal to be presented to the government soon, the panel, set up in February 2024, also calls for discussions on deploying submarines equipped with long-range missiles, including nuclear-powered ones, to strengthen the country's deterrence capability, the sources said. It remains unclear how the proposal will be reflected in Japan's defense policy, as questions remain over how to fund a larger budget and whether using nuclear power for defense purposes would conflict with the country's policy of peaceful atomic energy use. The government "should not hesitate to pursue the further strengthening of defense capabilities after the achievement" of the current target to have defense-related spending account for 2 percent of GDP, the panel says in the draft proposal, according to the sources. The panel says submarines that enable Japan to strike from beyond an enemy's missile range would significantly enhance the country's deterrence capability. The government should discuss all possible options for propulsion systems, including nuclear power for the submarines, "without taboos," the panel says. The panel, chaired by Sadayuki Sakakibara, the former chairman of the Japan Business Federation, was set up to discuss how the country's defense capabilities should be bolstered in line with its current defense buildup plan. The plan, known as the Defense Buildup Program, allocates 43 trillion yen ($298 billion) over five years through March 2028, aiming for defense spending to reach 2 percent of GDP in fiscal 2027. Japan's annual defense budget had long been capped at around 1 percent of GDP. The program was adopted in December 2022 as part of three key security documents that marked a major shift in defense policy for a country with a pacifist Constitution, including a plan to acquire strike capabilities that could reach an adversary's territory. "It is necessary to make efforts to achieve the 2 percent target ahead of schedule and compile the next defense strategy and the buildup plan," the panel says in the draft proposal. The panel, made up of experts in security, the economy, and science and technology, also calls for the full-fledged introduction of unmanned defense equipment using cutting-edge artificial intelligence technologies, the sources said. The government should consider using unmanned aircraft for continuous day-and-night aerial monitoring, the panel says, following a May incident in which a Chinese military helicopter entered Japanese airspace near the Japanese-administered Senkaku Islands in the East China Sea, which are claimed by Beijing. Related coverage: Philippines, Japan conduct joint exercise in South China Sea Japan draws up 100 bil. yen policy to attract foreign researchers Japan conveys strong concern over China jet flying close to SDF plane

Japan offers to purchase U.S. defense items in negotiations
Japan offers to purchase U.S. defense items in negotiations

Asahi Shimbun

time30-05-2025

  • Business
  • Asahi Shimbun

Japan offers to purchase U.S. defense items in negotiations

Ryosei Akazawa, right, minister in charge of economic revitalization, shakes hands with U.S. Treasury Secretary Scott Bessent ahead of tariff negotiations in Washington on May 1. Bessent is accompanied by Commerce Secretary Howard Lutnick, third from right, and Trade Representative Jamieson Greer. (Pool) Japan is using fighter jets and cruise missiles as potential bargaining chips in negotiations over U.S. tariffs, telling the United States that it will buy trillions of yen worth of U.S. defense equipment over several years. According to government sources, the overall amount of planned purchases was presented to the U.S. side during tariff negotiations that started in April following discussions within the government. A large part of defense equipment covered by the plan are items that the government already decided to source from the United States over five years through fiscal 2027 under the Defense Buildup Program, which was established at the end of 2022, the sources said. The program calls for procurement of Tomahawk cruise missiles, F-35A fighter jets and other U.S. defense equipment items in phases over the five-year period. Prime Minister Shigeru Ishiba has said national security issues should not be linked with tariff negotiations. But U.S. President Donald Trump has repeatedly complained about the country's trade deficit of about 10 trillion yen ($69 billion) with Japan. A government official said it is important to show Trump how much Japan will buy from the United States by the numbers. Ryosei Akazawa, minister in charge of economic revitalization, met with Ishiba on May 29 before flying to the United States for a fourth round of tariff negotiations with Treasury Secretary Scott Bessent and other senior U.S. administration officials. Akazawa told reporters after the meeting that national defense, tariffs and trade policies should not be lumped together for negotiations because 'different logic and standards apply to each.' Still, he suggested that Japan's purchases of U.S. defense equipment, which are expected to help reduce the bilateral trade imbalance, might have a role to play in Japan-U.S. negotiations. During Trump's first presidency, the administration of Prime Minister Shinzo Abe agreed to buy 105 additional F-35 fighter jets from the United States in the midst of bilateral trade negotiations. (This article was written by Taro Ono and Mizuki Sato.)

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