Defence Industry

Building a Japan That Can Surge Drone and Ammunition Production | Reading the Defence Ministry's Planned Investment Subsidies and Law Revision Through the Budget Request, the Basic Policy and a Japan-China Spending Comparison

On 11 September 2026, Japan's Ministry of Defense was reported to be planning capital investment subsidies and a revision of the Defence Production Base Strengthening Act so that drones and ammunition can be surged in a contingency. This piece checks what is actually on the table in the FY2027 budget request and the Basic Policy 2026, looks at how Ukraine's four-million-drones-a-year war changed the nature of fighting, the dependence on Chinese-made drones that hold more than 70 percent of the world market, a Japan-China defence spending comparison using SIPRI and National People's Congress figures (roughly five to one), and the components and export control work that domestic surge capacity will require.