Japan’s Cabinet has approved a record defense budget exceeding 9 trillion yen ($58 billion) for fiscal year 2026, marking a 9.4 percent increase amid escalating tensions with China. This budget supports the five-year Defense Buildup Program aimed at achieving a 2 percent GDP target, with significant allocations for long-range cruise missiles and the introduction of the ‘SHIELD’ coastal defense system employing unmanned vehicles. Defense Minister Shinjiro Koizumi cited the necessity of this initiative in light of heightened security threats, including Chinese military activities in the Pacific. This development is pivotal for regional stability, as it enhances Indo-Pacific deterrence strategies, aligns with India’s interests in countering Chinese assertiveness, and fosters collaborative defense industry efforts among allies.