Japan must adapt to modern methods of combat, such as the drones and AI used in the Ukraine and Middle East conflicts, the East Asian nation’s government says.

Japan has bolstered its military capabilities and spending in recent years, deploying long-range cruise missiles to serve as a deterrence against China's military activity.

A 598-page defence paper adopted by the Cabinet on Tuesday reiterated that China remains Japan’s biggest strategic challenge.

The growing presence and frequency of Chinese warships in the Pacific Ocean has raised alarm in Tokyo.

Inspired by the use of drones by Ukraine, Japan considers it essential to adapt to "new ways of warfare", the paper said.

With many countries racing to develop combat drones, Japan's government is prioritising developing its own for coastal defence, combined with long-range missiles.

“Speed is key,” defence minister Shinjiro Koizumi said in early July.

The Acquisition, Technology and Logistics Agency recently selected four drone makers out of 38 applicants for a rapid development programme.

They will move to testing by Japan's navy in early August before a final selection.

A number of companies are developing similar drones. Toshiba announced on Friday that it has plans to jointly develop combat drones with startup Pro Drone.

Uncrewed weapons could help Japan make up for its decreasing number of service members in a country with a shrinking population.

Experts say developing fully homemade drones while Japan’s commercial drone market is dominated by Chinese imports would be a challenge.

Japan worries about a conflict in Taiwan

Japan has strengthened its military forces on southwestern islands in recent years and has started deploying long-range cruise missiles, as it worries about a conflict in Taiwan, which China claims as its territory.

The paper noted the growing presence of Chinese warships and the frequency of their activity in the Pacific as a major concern. The Defence Ministry has established a unit dedicated to study Japan’s Pacific strategy and strengthen its defence against China.

China has consistently increased its military spending without transparency and strengthened nuclear and missile capability extensively and rapidly, the defence paper said.

It noted that last December, Chinese aircraft locked their radars and considered possible preparation for firing missiles on Japanese planes during Chinese aircraft carrier drills near southwestern Japan.

Two Chinese aircraft carriers were spotted last June near the southern Japanese island of Iwo Jima for the first time. This triggered Tokyo's worries about Beijing’s rapidly expanding military activity far beyond its borders and in disputed areas in the East China Sea.

Tensions between Tokyo and Beijing have escalated since Prime Minister Sanae Takaichi said in November that Chinese military action against Taiwan could justify Japan’s use of force.

China’s growing joint military operation with Russia around Japan, including joint bomber flights and warship operations, is also “a grave national security concern”, the paper said.

It says that North Korea’s rapid development of missiles, including hypersonic arsenals, is an “increasingly serious and pressing threat” and that the North’s growing military ties with Russia and its backing for Moscow's war in Ukraine are a grave concern.

Japan looks to strengthen weapons production

Strengthening arms production and technology is essential to Japan's military power, the paper said. The government has been expanding funding for startups and scientific research.

In a country that had maintained a pacifist pledge since the end of the Second World War, many established companies avoid ties to lethal weapons, but a growing number of startups are showing interest in converting dual-use technology for military use, officials say.

Japan’s recent scrapping of lethal weapons export ban could also help strengthen the country's underdeveloped defence industry.

Weapons technology transfer and joint development and production strengthens both Japanese defence industry base and Japan's ties with its defence partners, said Mr Koizumi, whose travels to other countries have involved arms sales.

Japan recently made major deals, including the joint development and transfer of 11 upgraded Mogami-class frigates to Australia. It is discussing a similar deal with New Zealand and has struck a deal to sell retired destroyers to the Philippines.