The Japanese defence ministry has revealed that it has requested 212 billion Yen from newly elected Prime Minister Shinzo Abe’s stimulus package as tensions continue to grow over who controls a set of islands in the East China sea.
The ministry plans to spend the funds to purchase extra missile interceptors and upgrade its fleet of F-15 jet fighters. Abe has vowed to increase spending for the military and coast guard in an effort to boost Japans capability in the face of an increasingly authoritative China. On January 11th Abe is expected to finalize a deal to implement a further 120 billion yen to the 12 trillion Yen defence budget.
Tensions increased last month after Japan scrambled eight F-15 jets in response to a Chinese plane making an aerial incursion into Japanese airspace. Tensions have also grown on the seas with Chinese warships repeatedly entering the waters around the disputed islands, known as the Senkaku in Japan and Diaoyu in China. The Japanese coastguard has warned off several transgressors with the Japanese government summoning China’s ambassador to explain an incursion earlier this week.
“We have decided that the additional budget will be used for research into a new radar system as well as fuel and other maintenance costs for early-warning aircraft,” said a Japanese defence official, despite Beijing’s warnings against higher defence spending.
The dispute over the uninhabited islands was reignited in September when the Japanese government bought three of them from a private Japanese landowner, sparking violent demonstrations in China and damaging a $340 billion trade relationship.
An increase in tensions could have a severe impact on the two Asian economies which prior to these recent tensions was one of the most profitable in the Asian region. The Japanese Yen could suffer losses as investors grow concerned over the escalating tensions.
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