Japan's Cabinet has approved a record-high military budget for fiscal 2016.
The 5 trillion yen, or 42 billion U.S. dollar plan marks the fourth consecutive year that Japan has increased its defense budget.
This is the first defense budget since Japan enacted new security legislation in September.
The budget reveals that Japan's defense ministry is eyeing new early warning aircraft, and new aerial refueling tankers.
Analysts say the spending reflects Prime Minister Shinzo Abe's ambitions to take Japan's Self-Defense Forces overseas.
Part of the money is also said to be used to defend Japanese claims on islands in Chinese territory.
Chinese Foreign Ministry spokesman Hong Lei has reacted to the Japanese move and its implications for the Diaoyu Islands.
"Due to historical reasons, Japan's policy changes in the military and security field have long been closely watched by its Asian neighbors and the international community. We urge Japan to draw lessons from history, adhere to the path of peaceful development, and play a constructive role in safeguarding the regional peace and stability."
The budget will come into effect in April.
