Japan's cabinet has approved a record ¥9tn ($58bn) defense budget to enhance strike-back capabilities and coastal defenses amid escalating tensions with China, which has criticized Japan's space and military developments. The budget increase is part of Japan's plan to double its arms spending to 2% of GDP, focusing on unmanned drones and missile systems, as tensions with China and the US over Taiwan continue to rise. China has condemned Japan's space technology advancements and military activities, accusing them of fueling an arms race, while Japan emphasizes its defensive posture within constitutional limits.
Japan's Cabinet approved a record defense budget exceeding 9 trillion yen ($58 billion) for 2026, aiming to enhance its military capabilities with advanced missiles and unmanned systems amid rising tensions with China and regional security concerns, while also planning joint development of military technology and increasing defense industry support.
The US and Australia have signed an agreement to invest over $3 billion in critical mineral projects, including rare earths processing, to reduce dependence on China and strengthen supply chains, with plans for joint ventures and significant funding from the US Export-Import Bank.
Vietnam is still finalizing the details of a trade deal announced by President Trump, which includes a 20% tariff on Vietnamese exports and a 40% levy on transshipped goods, amidst uncertainties about implementation and enforcement, especially regarding transshipment and tariffs' scope, with China expressing concern over the deal's implications.
The US dollar declined against major currencies amid concerns over President Trump's steel tariffs and escalating China tensions, with markets wary of potential economic slowdown and inflation, while other currencies like the euro and Canadian dollar gained.
The US Navy is deploying F-35C Lightning II fighters and CMV-22B Osprey aircraft to Marine Corps Air Station Iwakuni in Japan, replacing the aging F/A-18 Super Hornets and C-2A Greyhound transports. This move aims to enhance air capabilities amid rising tensions with China. The F-35C jets will provide superior air superiority and deep-strike capabilities, while the CMV-22B Ospreys will improve operational range and support for carrier strike groups. The USS George Washington will replace the USS Ronald Reagan as the forward-deployed aircraft carrier in Japan.
Japan and the Association of Southeast Asian Nations (ASEAN) have strengthened their ties at a special summit, adopting a joint vision that emphasizes security and economic cooperation while respecting the rule of law. The leaders called for a rules-based Indo-Pacific region that is free and open, stressing respect for sovereignty and territorial integrity. Japan has been rapidly building up its military and expanding military partnerships to counter China's growing assertiveness in the region. Bilateral talks were held to enhance security ties, including deals to bolster Malaysia and Indonesia's maritime security capabilities. Japan also aims to push forward energy cooperation with ASEAN leaders.
Global military spending reached a record high of $2.24 trillion in 2022, marking the eighth consecutive year of spending growth, according to the Stockholm International Peace Research Institute. The war in Ukraine and tensions over China's military power are expected to continue to boost demand for weapons, contributing to the rise in military spending.
Senator Marco Rubio criticized the Biden administration for prioritizing issues like trans rights over demonstrating strength and deterrence to the rest of the world, calling them an "incompetent band of fools" and embarrassing the U.S. on the world stage. Rubio expressed concern about the administration's inability to create deterrence against China and said America's allies like Saudi Arabia and Egypt are "hedging their bets" when it comes to China and the U.S. Rubio also pointed out that under the Biden administration, the U.S. has a justice system that "indicts political opponents," and tries to "infiltrate sources to spy on Catholic churches" but allows criminals to run rampant and destroy major U.S. cities.
