The Japanese Cabinet on Friday approved a record budget for the upcoming fiscal year.
The 122.3-trillion-yen ($782 billion) budget will include more than 9 trillion yen for defense, setting an all-time record.
This comes as Tokyo looks to strengthen its coastal defense due to the rising tensions in the region, while seeking to double its spending on weapons to 2% of its gross domestic product.
The draft budget for 2026, which will officially begin in April and still requires the parliament's approval, is up 9.4% from 2025.
The Japanese government pledged to reach its 2% goal by March, two years earlier than planned, also due to pressure from its ally the US.
A briefing document by the Japanese Defense Ministry states that Tokyo "faces the most severe and complex security environment" since the end of the Second World War, adding the situations required to "fundamentally strengthen" its abilities on defense.
Due to Japan's struggles with manning its military, the country sees unmanned weapons as essential to its defense efforts, with drones playing a vital role.
To ensure quick weapons procurement, Tokyo plans on relying on imports, potentially from allies Turkey or Israel.
The background to the country's arms race is the risk of China taking military action against Taiwan, with Japanese Prime Minister Sanae Takaichi saying Tokyo could intervene should Beijing's statements about forcing its rule on the self-governing island come to fruition.
Earlier this month, Chinese aircraft carrier military drills near the southwestern part of Japan resulted in protest as a Chinese jet locked their radar on a Japanese jet, which is considered possible preparation for firing.
Tokyo's current defense strategy from 2022 names China as the country's biggest strategic challenge.
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