Japan’s government has recast its accelerating military buildup as a driver of national prosperity, arguing in its 2026 defense white paper that defense investment can support startups, absorb commercial technologies and expand the country’s industrial base alongside strengthening national security. Rather than presenting military spending solely as a response to a deteriorating security environment, the paper argues it can also stimulate technological innovation and long-term economic growth, reflecting Tokyo’s effort to broaden domestic support for rearmament.
The white paper identifies China as Japan’s greatest strategic challenge, citing Beijing’s growing military activity around Taiwan and near Japan’s southwestern islands, alongside deepening military cooperation with Russia and North Korea’s advancing missile and nuclear capabilities. It describes these developments as “a matter of serious concern to Japan and the international community” and says Tokyo must continue strengthening its deterrence posture. Japan has already increased defense-related spending to roughly 2% of GDP through a combination of tax increases, spending reforms and one-off revenues, while investing in missiles, drones and other capabilities intended to deter a Taiwan contingency.
Beyond the security rationale, Japanese officials argue that a stronger defense industry can reinforce the country’s broader technological and manufacturing base. However, the white paper leaves unanswered how Tokyo would finance further increases beyond the current spending target. Reuters noted that the fiscal challenge has become more acute as higher interest rates raise the cost of servicing Japan’s already substantial public debt, leaving questions over how an even larger military buildup could be reconciled with the country’s strained public finances.
