China's Defense Spending Thread

Japan reveals record defence budget as tensions with China grow

Interesting, in term of Japanese Yen, it indeed increases, but because Yen is much lower value compared to USD now than last year, in fact in USD, the Japanese defence spending actually significantly lower. This is important as most Japanese weapons are imported, so would need USD

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At US$42bn the budget is another yearly increase but it is still dwarfed by both China and the US

Justin McCurry in Tokyo
theguardian.com, Wednesday 14 January 2015 06.03 GMT

Japan has announced its biggest ever defence budget in response to China’s increasing military influence in the region and Beijing’s claims to a group of disputed islands administered by Tokyo.

The 4.98 trillion yen (US$ 42bn) budget approved by the cabinet on Wednesday is up 2% from last year and marks the third straight increase after more than a decade of cuts.

The rise is in line with Japan’s more assertive defence policy under the conservative prime minister, Shinzo Abe, as he seeks to counter Chinese influence and remove the postwar legal shackles from his country’s military.

This year Abe is expected to push for legislation to reinterpret Japan’s constitution to allow Japanese troops to fight alongside allies on foreign soil for the first time since the end of the second world war. The move has been welcomed in Washington, which wants Japan to play a bigger role in the bilateral security alliance.

At US$112.2bn, China’s defence budget dwarfs that of Japan. China is second only to the US, which spent US$600.4bn on defence in 2013, while Japan ranked seventh, according to the International Institute of Strategic Studies in London.

Much of the military hardware included in Japan’s new budget is designed to monitor outlying territories and repel any attempt to invade island chains in the East China Sea.

It includes money for 20 P-1 maritime surveillance aircraft, six F-35 fighters, five Osprey planes that double as helicopters, Global Hawk drones, two Aegis radar-equipped destroyers and a missile defence system to be jointly developed with the US.

The defence ministry also plans to buy 30 amphibious assault vehicles and an early-warning aircraft that will patrol islands in southern Japan.

The defence minister, Gen Nakatani, said extra defence spending was a response to the “changing situation” in the region – a clear reference to repeated incursions by Chinese surveillance ships in waters near the Senkakus.

“The level of defence spending reflects the amount necessary to protect Japan’s air, sea and land, and guard the lives and property of our citizens,” Nakatani said, adding that Chinese planes had flown “abnormally close” to Japanese aircraft.

“The real question is whether increased defence spending is the most effective way to respond to the rise of China,” which boosted military spending by 12 percent last year, said Koichi Nakano, a politics professor at Sophia University in Tokyo.

“Japan is an ageing, mature economy with already huge public debt. China’s GDP is double that of Japan’s, and its population is 10 times bigger, Nakano said.

“Beefing up military deterrence is going to be only part of the solution. Diplomatic efforts to lower tensions are at least as important, if not more so. Quite simply, Japan cannot afford to get into an arms race with China.”

With an eye clearly on the risk of an invasion of one of its outlying islands, including the Senkaku chain, Japan has been developing its own version of the US marine corps, as well as acquiring more amphibious assault vehicles.

But some analysts say Abe’s defensive plans are not just in response to China’s increasingly assertive behaviour in the East China sea.

Tokyo is also concerned about North Korea’s nuclear weapons programme, protecting sea lanes and shifting its priorities from the Cold War focus on its northernmost region to maritime threats further south, said Jun Okumura, a visiting scholar at the Meiji Institute for Global Affairs in Tokyo.

“That said, China’s increasingly assertive behaviour in the East China Sea and air space, plus, of course, its overtly hostile actions against the Philippines and Vietnam certainly have a major influence on the direction of Japan’s military spending, the thrust of its military doctrine and its approach to security alliances,” Okumura said.

Tensions between Japan and China would continue as long as Beijing refuses to observe international law, said Tetsuo Kotani, a senior fellow at the Japan Institute of International Affairs.

“China does not acknowledge freedom of navigation and overflight for foreign militaries, while at the same time it is threatening other countries’ territorial waters and airspace,” Kotani said. “Unless China respects international law and rules, these crises will continue.”

A heavy load of prejudiced China-threat accusations at the end there.
 

solarz

Brigadier
So even though Japanese defense spending increased by 2% compared to its budget last year, the value of yen relative to USD has dropped 15% since last year.

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Last year, 1000 yen was worth 9.70$ USD. This year, it's only worth 8.50$. This means that a measly 2% increase would mean 1020 yen = 8.67$ USD.

So in terms of purchasing power, their budget actually shrank by 10%!

So really something of a non-story here...

Actually, if you think about it, 2% is a negligeable increase. Most countries have inflation rates higher than that!

So the real story here should be why particular media outlets are trumping up this miniscule increase.
 

vesicles

Colonel
I think what is important is not the actual amount, but the trend. As the article says, Japan had been cutting its defense budget for a long time. Yet, this is the second consecutive year that it has increased its defense budget. It is the changing trend that is alarming, i.e. Japan is either slowing down its cut on national defense or stopping the cutting or even increasing the budget (taking into account of inflation etc...). So it suggests that Japan is changing its position on defense.
 

solarz

Brigadier
I think what is important is not the actual amount, but the trend. As the article says, Japan had been cutting its defense budget for a long time. Yet, this is the second consecutive year that it has increased its defense budget. It is the changing trend that is alarming, i.e. Japan is either slowing down its cut on national defense or stopping the cutting or even increasing the budget (taking into account of inflation etc...). So it suggests that Japan is changing its position on defense.

Actually, according to this, Japan's military expenditures as a percentage of GDP have remained largely constant:

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You know what they say about lies and statistics....
 

tphuang

Lieutenant General
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Exactly ..... perhaps the definition of defence spending in China is a bit different as I understand, it doesn't include R & D, foreign weapon purchases and pension(?), etc
nope
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They do include the costs of research, but not for the People's Armed Police. Only the military portion of our space program is paid for under the defense budget.
since foreign weapon purchases is like nothing these days, the official budget is not that far away from truth. It's typically around 1 to 1.5% in the past 20 years.
 

SampanViking

The Capitalist
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Chinese GDP is roughly $10T, so 2.1% GDP means $210B defence spending? ... I doubt it!

Just a quick point that using GDP to measure the importance of military spending is a bit misleading. It is far more useful to measure it as a percentage of government spending (and that spending against revenues). The measure of a low tax/high tax economy and the military spending compared to other public spending commitments is far more revealing as to the level of militarisation in a society.
 
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