Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
weak-yen
Japan's Foreign Minister Yoko Kamikawa and Philippine's Defence Minister Gilberto Teodoro shake hands after signing the reciprocal access agreement, at the Malacanang Palace in Manila, Philippines, July 8, 2024.
Can Japan afford to muscle up?
Japan and the Philippines signed a new defense pact on Monday, allowing the mutual deployment of forces to each other’s territory for training – part of a larger mutual effort to stave off China. But while Tokyo’s diplomats are sealing deals with much-needed allies, its defense officials are stressing that a weak yen threatens to eat up their budgets.
Before the Filipino deal, Prime Minister Fumio Kishida reached similar defense agreements with Australia and the UK, and he has established historically warmer ties with South Korea, improving political and military cooperation. He is also trying to double defense spending by 2027, which would make Japan the world’s third-largest military spender. So why is Tokyo slashing orders for new airplanes and warning of more cuts?