Japan is planning to establish a sophisticated satellite network as part of its response to recent tensions with China. This initiative is included in Japan’s proposed ¥8.5 trillion defence budget for the fiscal year beginning in April 2025, which is nearly $59 billion.
This budget represents a 7.4% increase from the current year and is part of a broader effort by Japan to almost double its defence spending under the leadership of Prime Minister Fumio Kishida, who is set to leave office soon.
The decision to develop this satellite network follows increased Chinese activity around Japan, particularly near the southwestern islands extending towards Taiwan. This summer, Japan’s Ministry of Defense observed Chinese naval movements, including frequent operations of the Shandong aircraft carrier.
Additionally, in August, Japanese airspace was breached for the first time by a Chinese military aircraft, which has heightened security concerns in Tokyo.
The planned satellite network, which will cost approximately $2.2 billion, aims to enhance Japan’s capability to monitor ships and military sites.
Currently, Japan relies heavily on U.S. intelligence for such operations. The new satellites will be positioned in low-altitude orbits and operated collectively to provide real-time tracking and targeting information. The network is expected to be operational by early 2028.
In response to the increasing threat, Japan is also introducing longer-range missiles. By early 2026, Japan will start receiving 400 U.S.-made Tomahawk cruise missiles and an upgraded version of the Type 12 surface-to-ship guided missiles, which have a range of up to 600 miles. This move marks a significant shift from Japan's traditional defence-only stance, as the country has indicated it may now target enemy territories if threatened.
Retired General Haruhiko Kataoka emphasised the strategic importance of the new satellite system. He noted that it would provide Japan with independent targeting capabilities, reducing its reliance on U.S. support. The exact number of satellites planned has not been disclosed, but experts suggest that hundreds may eventually be needed for effective surveillance.
The new satellites will focus on detecting and tracking maritime activities, particularly given China’s expanding naval presence. Japan’s southwest island chain has been a hotspot for tensions, with frequent sightings of Chinese fishing vessels and coast guard ships. Recently, suspected Chinese drones have been observed around these islands, further complicating the security landscape.
Additionally, Japan’s defence budget includes $1.4 billion for acquiring four Boeing KC-46A tanker aircraft. These aircraft are intended to support long-range combat missions and provide aerial refuelling, enhancing Japan’s operational capabilities in the island chain.
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