Japan will no longer consider the size of its defense budget relative to GDP when deciding on its defense budget in light of the growing threat from the Chinese Communist Party, Defense Minister Nobuo Kishi told the media on Wednesday (May 19). Analysis by Nikkei Asia suggests that Japan may remove the annual defense spending cap of no more than 1 percent of GDP in order to strengthen its defense capabilities.
In an exclusive interview with Nikkei on Wednesday, Nobuo Kishi stressed that Japan “must improve our defense capabilities at a completely different pace than in the past.
“The security environment around Japan is changing rapidly and uncertainty is increasing.” “We will rationally allocate the funds we need to protect our country” regardless of the cost of defense spending as a percentage of gross domestic product (GDP), Kishi explained.
This decision is in line with Japanese Prime Minister Yoshihide Suga’s commitment to “strengthen our own defense capabilities to further enhance alliance and regional security” during his visit to the United States last month.
Nobuo Kishi also mentioned that Japan will strengthen its defense capabilities in new areas, such as space, cyber and electromagnetics. He said, “Technological innovation is advancing at a tremendous pace, and the nature of conflict is changing.”
The only year since the 1990s in which Japan’s defense spending exceeded 1 percent of GDP was fiscal year 2010, which coincided with a sharp decline in its GDP in the wake of the global financial crisis. As of fiscal 2021, Japan’s defense budget has been below 1 percent of GDP in all but nine consecutive years, despite increases.
However, according to preliminary data released Tuesday, Japan’s defense spending in fiscal 2020 is 0.997 percent of GDP for that year; while the budget for fiscal 2021 rose 0.5 percent to 5.34 trillion yen ($50 billion in contracts).
The report argues that Japan’s plan to boost defense spending and cross the 1% of GDP cap marks a turning point in its security policy.
In addition, Australia is also strengthening its own defense to counter the expansion of the Chinese Communist Party’s military influence. According to a new analysis, Australia’s defense spending was 2.45 percent of the economy at the end of last year, the highest point since the end of the U.S.-Soviet Cold War, the Australian Financial Review (AFR) reported.
The Australian government allocated A$34 billion ($26.4 billion) for defense spending in last year’s budget for the 2020-21 fiscal year, rising to A$39 billion ($30.3 billion) by 2023-24.
During a visit to Darwin in late April, Australian Prime Minister Scott Morrison announced that A$747 million ($580 million) would be allocated to upgrade military facilities in the Northern Territory. For the first time, Australia also plans to buy long-range missiles.
Australia’s new defense minister, Peter Dutton, has said that the risk of military conflict in the Taiwan Strait should not be underestimated. In a lecture to his subordinates, Australian Home Affairs Secretary General Mike Pezzullo also warned that the “sound of war drums” was approaching and that Australia must be prepared to send troops to war.
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