Japan Links Defense Spending to Economic Growth

Japan's new defense strategy argues that higher military spending can strengthen both national security and economic growth.

The strategy says investment in the defense industry supports technological innovation, startups and the wider economy. It also identifies China as Japan's greatest strategic challenge while highlighting growing security risks posed by Beijing, Russia and North Korea.

Prime Minister Sanae Takaichi's government is preparing a new national security strategy that is expected to lead to further increases in defense spending aimed at deterring China from taking military action against Taiwan.

Japan has already raised defense spending to around 2% of GDP and is investing heavily in long-range missiles. Additional funding is expected to focus on drones and other unmanned systems, reflecting lessons drawn from the wars in Ukraine and the Middle East.

(Reuters, mja)