Japan doubled defense spending to counter China. Now it wants AI, underwater attack drones and government-owned weapons factories

Japan has doubled its defense spending to counter growing assertiveness from China, now seeking to bolster its capabilities with drones, artificial intelligence (AI), and underwater attack drones, according to the Defense Ministry's 8.9 trillion yen ($55.6 billion) budget request for the upcoming fiscal year. Although only a slight increase from the 8.8 trillion yen ($55 billion) budget proposed for this fiscal year, the request will be higher eventually, pending approval of a new security and defense strategy by Prime Minister Sanae Takaichi's government.

The five-year defense strategy, established in 2022, aims to bolster the Self-Defense Forces' offensive role, increasing their defense budget to 2% of Japan's GDP. Japan seeks to "drastically strengthen its deterrence and response capability by transforming its defense capability" to adapt to emerging warfare methods, such as the deployment of drones in Ukraine.

The government plans to develop and mass-produce low-cost unmanned weapons to reduce costs, minimize casualties, and build a more cost-efficient air defense network. Uncrewed attack drones, long-range cruise missiles, interceptors, and hypersonic missiles are among the new tools Japan intends to incorporate. The ministry is also focusing on AI integration in defense command and control, aiming to enhance decision-making speed and accuracy through an integrated AI platform, while considering foreign AI technologies, including those from the U.S., alongside domestically developed AI systems.

Furthermore, the government plans to establish a state-owned contractor-operated system to ensure stable defense equipment production and supplies, addressing concerns about supplier withdrawals and a constitutional limit on force use for self-defense.