TOKYO—Japan called China its biggest security challenge and said it would sharply raise military spending including for missiles that can hit other countries, marking one of Tokyo’s biggest post-World War II shifts away from pacifism.
Releasing its long-awaited military strategy for the next decade, Tokyo said Friday that by fiscal 2027, it would spend about 2% of its gross domestic product on defense, up from about 1% now. Based on current GDP, that would bring annual spending to the equivalent of around $80 billion, putting Japan third in the world behind the U.S. and China.