Japan’s New Prime Minister Takaichi Announces 2% GDP Defense Spend and Export Reforms
Updated (2 articles)
Reappointment Secures Historic Female Leadership and Supermajority On February 18, 2026, the lower house reinstated 64‑year‑old Sanae Takaichi as Japan’s first female prime minister, confirming the Liberal Democratic Party’s two‑thirds majority won in the February 8 snap election [2]. The election delivered the LDP and its Japan Innovation Party partner more than 75 % of lower‑house seats, giving Takaichi a strong mandate for security and constitutional reforms [1][2]. Her swearing‑in follows a rapid political turnaround after the election, positioning her to push an ambitious agenda.
Defense Budget to Reach 2 % of GDP, Doubling 2022 Levels Takaichi announced that Japan will raise defense spending to roughly 2 % of GDP beginning next month, about twice the 2022 allocation and the largest post‑war military buildup [1]. The increase funds new procurement, including the $7 billion sale of eleven Mogami‑class stealth frigates to Australia and potential destroyer deals with the Philippines [1]. The budget hike aligns with her pledge to review the nation’s defense posture in response to what she described as rising Chinese coercion [1][2].
Security‑Document Amendments and Intelligence Overhaul Planned The prime minister intends to amend Japan’s three core security documents this year, loosen long‑standing arms‑export restrictions, and establish a ministerial‑level panel to centralize the Cabinet Intelligence and Research Office into a National Intelligence Agency [1][2]. Her upcoming policy address will also revamp the “Free and Open Indo‑Pacific” framework, strengthen supply‑chain resilience, and propose an anti‑espionage law [2]. These moves aim to diversify critical mineral supplies after China limited rare‑earth shipments to Japan [1].
Beijing Condemns Japan’s Militarist Rhetoric, Tensions Rise Over Taiwan At the Munich Security Conference on February 14, Chinese diplomat Wang Yi accused Japan of reviving militarism, reflecting Beijing’s anger over Takaichi’s hints that Japan could intervene if China attempts a forceful takeover of Taiwan [2]. The criticism underscores the diplomatic friction sparked by Japan’s defense expansion and its pursuit of a more assertive regional role [1][2]. Despite the backlash, Tokyo continues to promote its defense export market and supply‑chain independence as core components of its security strategy [1].
Sources
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1.
Newsweek:Japan’s PM Takaichi Vows Defense Overhaul Amid Chinese Coercion: details Takaichi’s defense budget increase to 2 % of GDP, snap‑election supermajority, planned security‑document revisions, intelligence reforms, and rare‑earth export challenges .
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2.
The Hindu:Japan reappoints Sanae Takaichi as Prime Minister after landslide win: focuses on her historic reappointment, LDP two‑thirds majority, potential Taiwan intervention, Beijing’s condemnation, fiscal mix of tax cuts and debt concerns, and broader legislative agenda .
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Timeline
2024 – Japan signs a $7 billion contract to sell 11 Mogami‑class stealth frigates to Australia, marking its emergence as a defence exporter and boosting its arms‑export profile[1].
Nov 2025 – Prime Minister Sanae Takaichi hints Japan could intervene militarily if China attempts a forceful takeover of Taiwan, signalling a shift toward a more proactive security stance[2].
Late 2025 – China imposes restrictions on rare‑earth exports to Japan, prompting Tokyo to accelerate diversification of critical‑mineral supply chains and reduce reliance on Chinese processing[1].
Feb 8, 2026 – A snap election gives the Liberal Democratic Party and Japan Innovation Party a three‑quarters lower‑house majority, providing Takaichi with a strong mandate for security reforms and constitutional revision[1].
Feb 14, 2026 – At the Munich Security Conference, Chinese diplomat Wang Yi accuses Japan of trying to “revive militarism,” reflecting Beijing’s anger over Tokyo’s defence posture[2].
Feb 18, 2026 – The Diet reappoints Sanae Takaichi as Japan’s first female prime minister, confirming the LDP’s two‑thirds majority and setting the stage for her defence and fiscal agenda[2].
Feb 18, 2026 – Takaichi pledges to suspend the consumption tax on food for two years, while IMF chief Rahul Anand warns that debt‑interest payments could double between 2025‑2031, highlighting fiscal risks[2].
Feb 18, 2026 – The new government targets passage of the FY 2026 budget, a law outlawing flag desecration, accelerated constitutional debate, and reforms to imperial succession that stop short of allowing a female emperor, while creating a cross‑party council on taxation[2].
Feb 20, 2026 – Takaichi warns that China’s “coercion” is rising and announces a defence posture review, aiming to raise defence spending to about 2 % of GDP—roughly double the 2022 level—marking Japan’s largest post‑war military buildup[1].
Feb 20, 2026 – Takaichi pledges to amend Japan’s three core security documents, loosen arms‑export rules, and establish a ministerial‑level panel to transform the Cabinet Intelligence and Research Office into a centralized National Intelligence Agency, alongside an anti‑espionage law[1][2].
Feb 20, 2026 – In his upcoming policy address, Takaichi plans to revamp the “Free and Open Indo‑Pacific” framework, bolster supply‑chain resilience, promote the CPTPP, and propose a National Intelligence Agency, signalling a comprehensive security and economic strategy[2].