The draft budget for fiscal 2026 beginning April is up 9.4% from 2025 and marks the fourth year of Japan’s ongoing five-year program to double annual arms spending to 2% of gross domestic product.

The increase comes as Japan faces elevated tension from China. Japanese Prime Minister Sanae Takaichi said in November that her country’s military could get involved if China were to take action against Taiwan, the self-governing island that Beijing says must come under its rule.

Takaichi’s government, under US pressure for a military increase, pledged to achieve the 2% target by March, two years earlier than planned. Japan also plans to revise the ongoing security and defense policy by December 2026 to further strengthen its military, the AP reported.

Japan has been bolstering its offensive capability with long-range missiles to attack enemy targets from a distance, a major break from its post-World War II principle limiting the use of force to own self-defense.

The current security strategy, adopted in 2022, names China as the country’s biggest strategic challenge and calls for a more offensive role for Japan’s Self-Defense Force under its security alliance with the US.

For 2026, Japan plans to spend more than 160 billion yen ($1 billion) to jointly develop a next-generation fighter jet with Britain and Italy for deployment in 2035. There also are plans for research and development of AI-operated drones designed to fly with the jet.