Japan's Defense Shift: How Space and Infrastructure Spending Meet US Demands

The move aims to demonstrate Tokyo's determination to boost defence outlays amid China's military assertiveness and other regional security challenges, while the US administration hopes its Asian ally will shoulder more of the regional security burden, Kyodo News reported.

Ahead of her first in-person summit with US President Donald Trump late last month, Prime Minister Sanae Takaichi pledged to accelerate the country's goal of raising defence spending and related initiatives to 2 percent of gross domestic product from fiscal 2027 to fiscal 2025.

Takaichi told reporters after talks with Trump on October 28 in Tokyo that there were no "exchanges with numbers in mind." However, months earlier, the Trump administration had reportedly pressed Japan behind the scenes to raise its defence spending to 3.5 percent of GDP, Kyodo News said.

According to sources, the government is considering allocating more of its budget to projects that enhance defence readiness, including space and aviation initiatives, as well as infrastructure protection, and counting them toward the overall defence budget total.

In the initial budget for the current fiscal year starting in April, defence spending was set at approximately 8.5 trillion yen ($55 billion) and related expenses at about 1.5 trillion yen. These related expenses cover four areas -- research and development, public infrastructure, cybersecurity, and international cooperation -- as well as the Japan Coast Guard's budget.

Infrastructure projects currently counted as defence-related mainly involve civilian airports and ports expected to be used by the Self-Defence Forces and the coast guard in the event of a contingency. The government is considering whether to include programs to protect energy facilities, transportation, and communications networks, sources said. Ideas have also emerged to add expenses for shipbuilding, disaster prevention, and police activities aimed at protecting sensitive information, such as advanced technology.

Takaichi, who assumed office on October 21 and is known as a security hawk, has promised to update Japan's key national security policy documents by the end of 2026. Under documents adopted in 2022, Japan set a goal of increasing defence and defence-related spending to 2 percent of GDP by fiscal 2027, a significant rise from the long-standing cap of around 1 percent of GDP.

The current defence buildup plan allocates 43 trillion yen in spending over five years through March 2028. The government has floated the idea of expanding items designated as defence-related, believing that revising the documents should be accompanied by additional budgetary measures, Kyodo News reported.

Defence Minister Shinjiro Koizumi said he conveyed Japan's resolve to continue increasing its defence spending when he met with his US counterpart, Pete Hegseth, on October 29 in Tokyo.

- ANI