‘Security for the future’: Inside Japan’s multi-trillion yen push to strengthen its defence industry

Japan is embarking on a multi-trillion yen initiative to strengthen its defense industry, viewing it as essential for guaranteeing national security in a rapidly changing global landscape marked by heightened threats from China, North Korea, and Russia.

According to its annual white paper released on August 4, Japan's Defense Ministry cited strategic threats and lessons from modern warfare, such as Ukraine's defense against a larger adversary, as key drivers for this investment. The goal is to transform the domestic defense sector, long considered an economic afterthought, into a primary engine of national power within five years.

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Defence production and technological bases are a virtually integral part of defence capability itself, and their reinforcement is indispensable.

This strategic shift was further underscored by Prime Minister Sanae Takaichi’s Cabinet approving its "honebuto" (solid economic policy) blueprint. While not setting new explicit spending targets, the blueprint referenced goals set by allies like NATO (3.5% of GDP by 2035), South Korea, and Australia. The blueprint emphasizes bolstering diplomatic and defense power, integrating various capabilities including economic and technological strengths, and building a globally competitive defense sector to position Japan within international supply chains.

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Japan must first and foremost bolster its diplomatic power, proactively strengthen its defence power, and at the same time organically integrate its diplomatic, defence, economic, technological, intelligence, and human resource capabilities.

Defense Minister Shinjiro Koizumi stressed the paradigm shift in the white paper's foreword, stating, "Defence production and technological bases are a virtually integral part of defence capability itself, and their reinforcement is indispensable." Tokyo is also easing regulations on defense equipment transfers. Koizumi noted this move "helps ensure the domestic production capacity necessary for sustained operational capability" and enables mutual support among countries possessing similar equipment and sharing production and maintenance infrastructure.

The 2026 white paper, themed "Security For The Future," features a manga-style cover intended to convey a futuristic vision built on technological advancements and the aspirations of youth. Japan believes this future is contingent on a robust domestic defense base capable of deterring the perceived threats from China, North Korea, and Russia, who are noted in the report for deepening their strategic cooperation.

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helps ensure the domestic production capacity necessary for sustained operational capability