Japans Cabinet Approves Record $64 Billion Defense Budget Amid Tensions With China

Japanese F-15 fighters hold a joint military drill with a U.S. B-52 bomber over the Sea of Japan, on Dec. 10, 2025. Joint Staff Office of the Defense Ministry of Japan/Handout via ReutersJapan’s cabinet on Dec. 26 approved a record $784 billion budget for the next fiscal year that includes all-time-high defense spending, underscoring Prime Minister Sanae Takaichi’s push to accelerate military expansion amid rising regional tensions with China.The draft budget for the fiscal year beginning in April, which still requires parliamentary approval, sets defense outlays at about $64 billion, the largest in Japan’s history.