The Question

A Japanese Izumo-class helicopter destroyer underway at sea with escort vessels on the horizon

For nearly eighty years, Japan defined itself by what it would not do. Article 9 of its postwar constitution renounces war as a sovereign right and the threat or use of force to settle disputes. Its armed forces were named the Self-Defense Forces to underline the point, and defense spending sat for decades near an informal ceiling of 1% of national output. Then, in December 2022, Tokyo adopted three landmark security documents — including a new National Security Strategy — that authorized "counterstrike" capability, the ability to hit enemy missile bases, and set a course to raise defense spending to 2% of GDP.

Two percent may sound modest. Applied to the world's fourth-largest economy, it is not: it pushes Japan's defense budget past $60 billion, into roughly third or fourth place globally. The question this forecast weighs is whether the buildup continues to its logical end — Japan as one of the five most capable military powers on Earth by 2035 — or stalls under the weight of debt, demographics, and lingering public caution.

What the Evidence Shows

The money is already moving. The 2022 strategy came with a ¥43 trillion five-year spending plan, and the 2% of GDP target — originally set for fiscal 2027 — was accelerated and reached around fiscal 2025–26. Hardware is following: Japan is buying up to 400 US Tomahawk cruise missiles and upgrading its homegrown Type-12 missiles to strike targets roughly a thousand kilometers away — weapons that would have been politically unthinkable a generation ago.

The transformation runs deeper than missiles. Japan plans a fleet of about 147 F-35 stealth fighters, including F-35B jump jets that fly from its Izumo-class helicopter destroyers — ships now converted into light aircraft carriers in all but name. With Britain and Italy, it is developing a sixth-generation fighter under the Global Combat Air Programme, targeting service by 2035, and in March 2024 it eased export rules so the jet can be sold abroad — a historic break for a country that long banned most arms exports outright.

"Japan is finding itself in the midst of the most severe and complex security environment since the end of World War II."

— Government of Japan — National Security Strategy, December 2022

None of this abolishes Japan's pacifism on paper. Article 9 still renounces war; a 2015 reinterpretation allows "collective self-defense" — fighting alongside an ally under attack — within strict limits. And the buildup is happening inside the US alliance, not away from it: Washington and Tokyo upgraded their command relationship in 2024, and Japan stood up a new joint operations headquarters designed to fight, if ever needed, as one force with the Americans.

"A constitution that renounces war now coexists with one of the largest defense budgets on Earth."

Why This Is Happening

China's shadow lengthens daily. Chinese government vessels patrol near the Japanese-administered Senkaku Islands almost continuously, and Beijing's rapid military modernization — plus the prospect of a Taiwan crisis on Japan's doorstep — has convinced Tokyo that its neighborhood is turning dangerous. Japan's own defense white papers now describe the security environment in strikingly blunt language.

North Korea and Russia sharpen the fear. Pyongyang has fired ballistic missiles over Japanese territory, sending residents scrambling for shelter alerts. Russia's full-scale invasion of Ukraine showed that wars of conquest are back — and Moscow, a neighbor with which Japan has a decades-old island dispute, exercises its forces near Japanese waters.

Washington wants a stronger partner — and Tokyo is hedging. The United States, stretched across multiple theaters, has long pressed allies to carry more weight. Japanese planners also quietly ask what happens if American attention wavers. Building real capability answers both concerns at once: it strengthens the alliance while insuring against its limits. The alliance itself is being rewired to match — in 2024, Washington and Tokyo announced the largest upgrade to their command arrangements in decades, and Japan stood up a new joint operations headquarters to direct its ground, maritime, and air forces as a single fighting organization.


What Could Happen

The buildup holds and Japan joins the top tier by 2035 Most likely

Spending stays near 2% of GDP, Tomahawks and upgraded Type-12 missiles enter service, the carrier conversions mature, and the GCAP fighter stays on schedule. The export rules eased in March 2024 allow Japan to sell the new fighter abroad, seeding a defense industry that can sustain the buildup commercially. Japan fields one of the five most capable militaries on Earth while remaining tightly integrated with US forces.

A crisis accelerates everything Possible

A Taiwan confrontation, a North Korean provocation, or a sharp US–China rupture pushes Tokyo past 2% — faster timelines, longer-range weapons, and public opinion swinging decisively behind rearmament.

Demographics and debt stall the rise Less likely

Recruitment shortfalls in a shrinking, aging population, fiscal strain, and political turnover slow the programs. GCAP slips past 2035, and Japan plateaus as a formidable but second-tier military power.

Our Assessment
We assign 81% probability — likely — that by 2035 Japan fields one of the world's five most capable militaries. The strategy documents are adopted, the money is flowing, and the hardware is arriving; reversing course would require a political rupture no major Japanese party is proposing. The main drags are people and money — filling uniforms from a shrinking population and funding 2% from a heavily indebted budget. Those risks plausibly slow the trajectory; they are unlikely to stop it. Context matters equally: this is deterrence built inside an alliance and a democracy, not a return to the militarism of the 1930s.

What Can We Do

Japanese and American officers reviewing operational plans together at a joint command facility

Japan's choices will reshape Asia's balance of power whether or not the wider world pays attention. Watching them well matters more than most people realize.

Read the change accurately. Japan is not tearing up its pacifist identity; it is reinterpreting it under pressure, within its constitution and alliance. Grasping the difference between alliance-embedded deterrence and runaway militarism keeps public debate — in Japan and abroad — anchored in facts rather than the ghosts of the 1930s.

Watch the recruitment numbers, not just the budgets. A military is ultimately people, and Japan's population is shrinking and aging. Whether automation, unmanned systems, and better pay can offset a thinning pool of recruits is the single best indicator of whether the 2035 goal is realistic.

Follow the GCAP fighter as a bellwether. The joint jet with Britain and Italy tests everything at once: Japan's technology, its export politics, and its ability to co-lead a major international program. If GCAP stays on track for 2035, the broader forecast almost certainly is too.

Support transparency and regional dialogue. A rearming Japan alongside a rising China is precisely the setting where miscalculation thrives. Crisis hotlines, published defense white papers, and military-to-military talks are what keep a stabilizing buildup from curdling into a destabilizing arms spiral.

Sources
  • Japan Ministry of Defense — Defense of Japan White Paper, 2025
  • Government of Japan — National Security Strategy, 2022
  • IISS — The Military Balance, 2026
  • CSIS Japan Chair — Analyses of Japan's Defense Reforms, 2025
  • RAND Corporation — Studies on Japanese Defense Policy, 2024
  • Forecast The World Research Desk — 800+ data sources