Japan is set to host the Typhon Mid-Range Capability (MRC) missile system, a move that is likely to antagonise China, which has fiercely criticized its deployment in the Philippines. Additionally, Japan is seeking a record $60 billion in defense budget with an eye on growing security challenges in the Indo-Pacific.
The Typhon MRC will be temporarily deployed in Japan as part of the Resolute Dragon exercise, scheduled to take place between September 11 and 25, according to the Japan Times. The system will be deployed to the US Marine Air Station Iwakuni, as notified by the spokesperson for the Japanese Ground Self-Defense Force (JGSDF).
While it is currently unclear whether a live-fire test will be conducted during the exercise, the spokesperson stated that the goal of the deployment is to enhance integrated operations, response capability, and deterrence.
The move appears to be part of a broader US strategy to boost firepower in the region, aimed at deterring China. Notably, this will be the third deployment of this potent intermediate-range missile system in the contentious Indo-Pacific region.
Earlier, in April 2024, the US Army deployed the Typhon ground-based missile system in the Philippines to participate in Exercise Balikatan 2024 and Exercise Salaknib 2024. The system has remained in the Southeast Asian country, much to China’s discomfort. The system was also deployed in the joint military drills earlier this year.
Angered by a long-range missile sitting in its neighborhood, Beijing has regularly called for the withdrawal of the system from the country, stating that such a move could trigger an arms race in the region.
However, making matters much worse, Manila has called for the permanent deployment and acquisition of the long-range missile system, which has the range to hit Chinese cities or its artificial islands in the contested South China Sea.
Following the Philippines, the system was also deployed to Australia as part of the Talisman Sabre drills in July 2025, during which a live-fire test was conducted. The test marked a major milestone, as it was the first time this long-range, ship-sinking missile system had been live-tested on foreign soil. But more importantly, it was perceived as a show of force by the two allies amid rising security threats from Beijing.
The deployment in Japan, after Australia and the Philippines, would likely amplify Beijing’s concerns, especially given the system’s ability to strike targets deep into China.
The Typhon Mid-Range Capability (MRC) system is a mobile, ground-launched missile system intended to deliver long-range, precise strikes in contested environments. There are four launchers in a Typhon battery, and each one can carry four missiles simultaneously. This means the missile system can fire a salvo of 16 missiles before it needs to be reloaded.
The Typhon particularly stands out for its versatility. It can fire two different yet very lethal missiles: SM-6 and Tomahawk cruise missiles. While the SM-6 missiles can successfully combat air and sea threats at ranges of more than 200 kilometers (165 miles), the Tomahawk cruise missiles can reach targets up to 1,600 kilometers (1,000 miles).
Positioned in Japan, the MRC could enable rapid, long-range strikes deep into Chinese territory, including military installations, naval assets, or command centers, potentially in a hypothetical conflict over Taiwan, the South China Sea, or the East China Sea. For perspective, the distance between Iwakuni (where the system is to be deployed) and the Chinese city of Shanghai is less than 700 kilometres across the East China Sea.
When asked to comment on reports that a joint #US and #Japanese military exercise in September will involve the temporary deployment of the "#Typhon" intermediate-range missile system in Japan, relevant training exercises will be conducted, and the missile system will be… pic.twitter.com/8lkHvpL7n9
— Global Times (@globaltimesnews) August 29, 2025
China views it as placing advanced missiles “on its doorstep,” undermining the regional balance of power and legitimate security interests.
“China always opposes the United States deploying the Typhon Mid-Range Capability missile system in Asian countries,” in response to the deployment. “We urge Japan to take a hard look at its history of aggression, follow the path of peaceful development, act prudently in military and security areas, and refrain from further losing the trust of its Asian neighbours and the international community.”
Besides China, Russia has registered its protest against the deployment, calling the move destabilizing.
“We view this as another destabilising step as part of Washington’s course toward ramping up the potential of ground-based shorter and intermediate-range missiles,” Russia’s Ministry of Foreign Affairs spokeswoman Maria Zakharova said.
Meanwhile, in another major development that is anticipated to trigger concern, the Japanese Ministry of Defense (MoD) has submitted its budget request for the 2026 fiscal year, requesting a record $60 billion to combat the security threats posed by the trio of China, Russia, and North Korea.
Japan’s Expansion In Defense Spending
Japan’s Ministry of Defense submitted its budget request for the 2026 fiscal year on August 29, calling for a whopping 8.8 trillion yen or about $59.9 billion.
The request aligns with an incremental year-on-year increase in defense spending amid rising regional security threats. Japan had decided in 2023 to allocate 43 trillion yen, or approximately $296.55 billion USD, over the next five years.
One of the most significant things in the budget request is the introduction of Japan’s multilayered littoral defense system, known as Synchronized, Hybrid, Integrated and Enhanced Littoral Defense (SHIELD), which will include several types of unmanned surface and subsurface vehicles, as well as Unmanned Aerial Vehicles (UAV) deployed from ships and the ground for short-, medium-, and long-range surveillance and striking operations.
The budget request also includes funding for an additional nine F-35A Conventional Take-Off and Landing (CTOL) aircraft and three F-35B Short Take-Off and Vertical Landing (STOVL) aircraft.
Earlier, the country had stated that plans to eventually acquire 105 F-35As and 42 F-35Bs. It has so far received 40 F-35A and 3 F-35B aircraft, totaling 43 F-35s.
Japan has reportedly requested two additional Boeing KC-46A Pegasus tanker aircraft, in addition to the six already ordered. These refueling aircraft are crucial for long-range missions.
The proposal includes allocations for the development and production of long-range precision weapons, including Type 12 Surface-to-Ship Missiles (SSM) and acquisition of Joint Strike Missiles (JSM) for F-35A fighters, Joint Air-to-Surface Standoff Missiles (JASSM) for upgraded F-15s, and Tomahawk cruise missiles for JMSDF Aegis destroyers.
In addition, it is developing a new long-range cruise missile, developed by Mitsubishi Heavy Industries, to be launched from the torpedo tubes of Taigei-class submarines by FY 2027.
Japan is also requesting funds for developing an Integrated Air and Missile Defense (IAMD) system. The idea is to bolster defense against missiles and aerial threats, including hypersonic weapons from adversaries like China, North Korea, and Russia. In addition to this, it has sought funding for a network of small satellites to enhance detection and tracking of targets, supporting its counterstrike strategy.
For the Navy, the budget includes funding for three Improved Mogami-class frigates to enhance its surface fleet capabilities and support for the ongoing construction of two Aegis guided-missile destroyers and troop transport ships.
Furthermore, the budget allocates funds for the development of next-generation aircraft under the GCAP program, in collaboration with the UK and Italy, as well as the procurement of six SH-60L antisubmarine helicopters.
The budget request has been sent to the Finance Ministry for review, with finalization expected by late December 2025. It aligns with Japan’s military modernization efforts, which focus on counter-strike capabilities and ramping up defense. Japan aims to reach 2% of GDP by FY2027, with FY2026 spending projected at 1.8% of GDP.
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