What Happened
Raising Military Spending Sparks Uncertainty Over National Trajectory
Japan is reportedly considering a new mid-term defense spending target of 3.5% of GDP, in line with NATO and other US allies. The move has sparked uncertainty over Japan’s national trajectory, with markets reacting sharply to the news. The Japanese government has denied the reports, but the development may signal a significant shift in Japan’s postwar defense policy, which has long been characterized by a low defense spending ratio. According to Global Times, Japan’s continued military buildup and potential adoption of NATO’s defense spending standard could have far-reaching implications for the region.