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Japan Targets 2% Defense Spending

time3 days ago

  • Business

Japan Targets 2% Defense Spending

Japan Data Politics Jun 27, 2025 Japan's defense budget was long set at 1% of the country's GDP, but following Russia's 2022 invasion of Ukraine, it has been lifted to 2%. In 1976, Prime Minister Miki Takeo decided to cap Japan's defense spending at 1% of GNP to act as a limit on militarization. While the administration of Prime Minister Nakasone Yasuhiro abolished this official limit in 1987, it remained a powerful unspoken concept (as a percentage of GDP from fiscal 1993). This is clear from the graph below. Russia's invasion of Ukraine in February 2022 prompted a rethink of the 1% limit. After NATO member countries successively committed to spending 2% of their GDP on defense, then Prime Minister Kishida Fumio pledged in national security documents approved in December 2022 to increase Japan's defense budget to 2% by fiscal 2027. From a base of ¥5.4 trillion in fiscal 2022, defense spending (including expenses related to US forces realignment) rose to ¥6.8 trillion in fiscal 2023 and ¥7.9 trillion in fiscal 2024. The budget for fiscal 2025 is ¥8.7 trillion, up 9.4% year on year. With the inclusion of the budget for the Japan Coast Guard and other related expenses, this rises to ¥9.9 trillion, which is 1.8% of the fiscal 2022 GDP and 1.6% of the projected GDP for fiscal 2025. Data Sources (Translated from Japanese. Banner photo: F-15 fighter jets at the Self-Defense Forces review ceremony on November 9, 2024. © Jiji.) SDF defense

Defense First: Why Japan's Industrial Base Must Be Rebuilt
Defense First: Why Japan's Industrial Base Must Be Rebuilt

Japan Forward

time5 days ago

  • Business
  • Japan Forward

Defense First: Why Japan's Industrial Base Must Be Rebuilt

As geopolitical tensions intensify, Japan's defense industry finds itself at a historic inflection point. A recent symposium, Strengthening Japan Through Its Defense Industry (Nihon o tsuyoku suru boei sangyo), brought together key political leaders, defense experts, and industry insiders to confront the urgent need to revitalize Japan's defense production capacity. The message was clear: Japan's ability to deter threats and assert strategic autonomy depends on the industrial engine that equips its Self-Defense Forces. Former Special Advisor to the Defense Minister Yoshiaki Wada, one of the speakers, opened his lecture with a blunt appraisal of the regional security environment. China and Russia now field a combined force of over one million troops and nearly 1,000 naval vessels, dwarfing the joint capabilities of Japan and United States forces in the region. While military effectiveness cannot be measured by numbers alone, Wada warned against underestimating the threat. "We must learn from Ukraine," he stated. "What we once thought unthinkable can become reality." Former Defense Minister's aide Yoshiaki Wada delivers a lecture at the Strengthening Japan Through Its Defense Industry symposium. June 21 Chiyoda Ward, Tokyo (©Sankei by Yuki Kajiyama). The symposium framed Taiwan as a potential flashpoint, with major repercussions for Japan. A Chinese military operation could cripple sea lanes vital to Japanese energy and food supplies. "A Taiwan contingency is not just Taiwan's problem," Wada stressed. "It's a Japanese problem, and a global economic one." Against this backdrop, Liberal Democratic Party lawmaker and former defense minister Minoru Kihara reminded the audience that Japan's defense posture rests on two pillars: Self-Defense Forces personnel and defense equipment. "Without advanced, domestically-produced equipment," he noted, "even the most skilled troops cannot fulfill their mission". This view has gained institutional traction. The 2022 revision of Japan's National Security Strategy explicitly defined the defense industrial base as part of defense power itself. Still, Kihara acknowledged that for many Japanese firms, defense remains a peripheral business — underfunded, undervalued, and politically sensitive. In some cases, reputational risk has even driven companies to exit the sector. Nobuaki Miyama, former Director-General of the Acquisition, Technology and Logistics Agency, identified three main challenges confronting Japan's defense sector. They included structural weakness, global supply chain disruptions, and low profit margins. Unlike the US, Japan has no pure defense contractors. Most firms treat defense as a side business, making them highly vulnerable to shifting market and political conditions. Moreover, the historical focus on domestic demand has bred a monocultural procurement model. "Until recently," Miyama said, "the only customer was the Japanese government." While government policies like the Act on Enhancing Defense Production and Technology Bases and export promotion initiatives are steps forward, Miyama emphasized that these are like vitamins, not staple nutrition. "What's truly needed," he argued, "is stable, long-term procurement. That's the rice of the industry." Keio University Professor Ken Jimbo addressed the broader strategic reorientation of global defense economies post-Ukraine. "The assumption that wars are short and tech-driven has collapsed," he said. "We are now in an era of prolonged, hybrid conflicts where industrial resilience is critical". This demands a rebalancing between responsiveness and sustainability. Countries like Germany and Poland are boosting defense budgets and rebuilding stockpiles. Meanwhile, the EU is promoting joint procurement schemes. Elsewhere, the US faces its own defense-industrial bottlenecks, as seen in its struggles to meet the demand for Ukraine and Israel. Jimbo also stressed that Japan must navigate a difficult trade-off: maintaining domestic production for self-reliance, while deepening international industrial cooperation to accelerate innovation and expand market access. "The key," he said, "lies in licensing, joint development, and supply chain integration, not autarky." As an industry representative, Masahiko Arai of Mitsubishi Electric highlighted his company's bold steps to meet rising demand. These include over ¥70 billion (approximately $450 million USD) in new investments and plans to expand its defense workforce by 1,000 employees. Arai outlined three strategic pillars for revitalization: Domestic Readiness – Expanding production and maintenance capacity in anticipation of a surge in defense contracts. Geopolitical Engagement – Positioning defense exports as tools of diplomacy and regional security. Global Collaboration – Building resilient supply chains through joint development with partners and allied nations. "Our industry can't remain inward-looking," Aarai said. "We must think strategically, globally, and long-term." Throughout the symposium, participants returned to the same core question: how to make defense a strategically attractive and commercially viable sector. The current system's low profitability, often below 3%, discourages investment and talent acquisition. Environmental, social, and governance (ESG) concerns, meanwhile, have made defense a reputational liability for some firms. Member of the House of Representatives Minoru Kihara delivers the keynote speech, June 21, Chiyoda Ward, Tokyo (©Sankei by Yuki Kajiyama). But speakers pushed back against the idea that defense should be judged by civilian commercial metrics alone. "This is not just another business," said Kihara. "National security is at stake. So is sovereignty. And in the end, it's the difference between deterrence and defeat." As the presentations noted, Japan's defense industry is no longer just a supplier — it is a strategic actor. Ensuring its survival and competitiveness in today's security environment will require more than subsidies or reforms. It will require a national consensus on the vital role of defense manufacturing in preserving Japan's peace, autonomy, and prosperity. Author: Daniel Manning

SDF Presence Grows in Okinawa amid China Threat; Locals Wary

time6 days ago

  • Politics

SDF Presence Grows in Okinawa amid China Threat; Locals Wary

News from Japan Politics Jun 24, 2025 16:24 (JST) Tokyo, June 24 (Jiji Press)--While Okinawa Prefecture marks 80 years since the end of the intense fighting there in the late stage of World War II, Japan's Self-Defense Forces is boosting its presence in the nation's southernmost prefecture amid China's increasing military activities. Japan's Defense Ministry has launched new units in and around the island prefecture in the past decade, in a bid to counter China's threats, and there is a possibility of long-range missiles being deployed to Okinawa in the future. Locals worry that the prefecture may once again become a battleground in the event of a contingency. Defense Vacuum [Copyright The Jiji Press, Ltd.] Jiji Press

Okinawa Memorial Day: Excessive Burdens of Bases Must Be Reduced
Okinawa Memorial Day: Excessive Burdens of Bases Must Be Reduced

Yomiuri Shimbun

time6 days ago

  • Politics
  • Yomiuri Shimbun

Okinawa Memorial Day: Excessive Burdens of Bases Must Be Reduced

June 23 is designated as 'Memorial Day,' as that is the day on which systematic fighting by the former Japanese military in Okinawa Prefecture is deemed to have ended. This year Memorial Day fell on Monday, and a memorial service was held that day in the city of Itoman in the prefecture for all the war dead. Eighty years have passed since the end of the Battle of Okinawa, which took place during the final days of the Pacific War. The resolve never to repeat such a tragic war must be renewed, and this commitment needs to be passed on to future generations. Even as long as eight decades after the end of World War II, the wounds of battle have not become a thing of the past. On June 9, an unexploded ordnance believed to have been used by the U.S. military during the Battle of Okinawa exploded in the village of Yomitan, and four members of the Ground Self-Defense Force who were checking the ordnance were taken to the hospital. About 1,900 tons of unexploded munitions are estimated to remain in the prefecture. The Self-Defense Forces are urged to make every effort to eliminate the danger posed by unexploded ordnance while taking all necessary safety precautions. Over 200,000 people lost their lives during the Battle of Okinawa, including Japanese and American military personnel and Okinawan residents. One in four Okinawan residents are believed to have died. The Japanese military retreated to the southern part of the main Okinawa island as it continued to resist in an attempt to delay a decisive mainland battle. This is said to have increased the suffering of the residents. As a result, the people of Okinawa feel strongly that they sacrificed themselves for mainland Japan. In addition, 70% of U.S. military facilities in Japan are still concentrated in Okinawa Prefecture. Some of the U.S. military units stationed in Okinawa, such as those of the U.S. Marine Corps, are essential for the defense of the Nansei Islands. However, the situation in which 70% of the bases are located in Okinawa Prefecture, which accounts for only 0.6% of Japan's total land area, must be improved. The government must steadily work toward the reduction of U.S. military bases in the prefecture and the relocation of exercises outside the prefecture. It is important to empathize with the feelings of the people of Okinawa and strive to reduce their burden. At the same time, the government must face the reality that the security environment around Okinawa Prefecture is rapidly deteriorating. China is increasing its military pressure on Taiwan. It has repeatedly intruded into Japan's territorial waters around the Senkaku Islands of Okinawa Prefecture, and it does not hide its ambition to change the status quo by force. To prevent Okinawa Prefecture from again becoming a battlefield, it is important to strengthen the defense capabilities of the Nansei Islands to prepare for a contingency. The government is considering renovating the airport on Ishigakijima Island, including extending the runway, to enable the SDF to use it in a contingency. However, progress has not been made due to opposition from the prefecture, which manages the airport. Okinawa Gov. Denny Tamaki opposes the enhancement of defense capabilities, arguing that U.S. military bases and SDF camps could become targets of attack. However, merely asserting this theory of 'becoming embroiled in a war' will not ensure the safety of the people of Okinawa. The government also lacks sufficient willingness to engage in dialogue with the prefecture. It is important to persistently explain that strengthening deterrence is also in the interest of Okinawa. (From The Yomiuri Shimbun, June 24, 2025)

U.S. Strikes on Iran: Concerns Grow over War Spreading, Becoming Quagmire
U.S. Strikes on Iran: Concerns Grow over War Spreading, Becoming Quagmire

Yomiuri Shimbun

time7 days ago

  • Politics
  • Yomiuri Shimbun

U.S. Strikes on Iran: Concerns Grow over War Spreading, Becoming Quagmire

The United States, Israel's supporter, has taken steps to intervene militarily in the ongoing hostilities between Israel and Iran. The situation in the Middle East has entered a new phase. It is feared that the fighting will spin out of control and turn into a quagmire. One can only be deeply concerned over the situation. The United States has announced it attacked three nuclear-related facilities in central Iran. The latest model of GBU-57 bunker-buster bomb, which is capable of burying itself underground before detonating, was reportedly used on the uranium enrichment facility in Fordo. This is believed to be the first time this type of bomb has been used in actual military operations. U.S. President Donald Trump declared the strikes 'a spectacular military success.' He asserted that the objective was the destruction of Iran's nuclear enrichment capacity and putting a stop to the nuclear threat posed by the country, adding that the United States 'will go after those other targets,' depending on how Iran responds. Israel launched airstrikes on Iranian nuclear facilities in mid-June and requested U.S. intervention. Trump was initially against military intervention. However, as soon as the view that Israel's strikes had achieved something began gaining traction, he quickly shifted gears toward attacking Iran. There were no prospects of a ceasefire in Ukraine or the Palestinian territory of Gaza, and nuclear negotiations with Iran have reached an impasse. With little in the way of diplomatic achievements, Trump may have hastily decided to attack Iran out of a desire for quick results. The United States proceeded with a war on terrorism in Afghanistan and Iraq following the 2001 terrorist attacks, but the battles turned into a quagmire, leaving the United States with bitter experiences. The war continued through 2021, when the U.S. military withdrew from Afghanistan, costing the United States many lives and a heavy financial burden. Trump has long maintained the stance that the United States should not intervene in other countries' conflicts and has been regarded as cautious about the use of military force. However, this time, he recognized Israel's right to self-defense and has himself become involved. He should avoid getting embroiled in wars in the Middle East like previous administrations. Iran's Foreign Ministry has issued a statement that condemned the United States, saying it 'has committed a grave violation of the UN Charter [and] international law,' hinting at retaliation. However, if that happens, further attacks will be inevitable. Retaliation should be avoided, and a solution through dialogue should be sought. Over 100 Japanese nationals and their family members left Israel and Iran by bus for neighboring countries. Many of them are reportedly heading to Japan by commercial aircraft. The government dispatched two large C-2 transport aircraft of the Air Self-Defense Force to Djibouti in eastern Africa, where the Self-Defense Forces have a base, in case commercial aircraft become unavailable. It is hoped that the government will smoothly carry out its duties. (From The Yomiuri Shimbun, June 23, 2025)

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