Japanese Prime Minister Sanae Takaichi's ruling Liberal Democratic Party secured a historic victory, capturing 352 of 465 seats in parliament's lower house. The landslide win empowers Takaichi to accelerate Japan's defense expansion plans, which Beijing has condemned as a return to militarism. Her administration aims to boost defense spending to 2% of GDP by March, with potential increases to 3% in the future.

Takaichi's hawkish security agenda includes strengthening military capabilities to deter Chinese threats, particularly regarding Taiwan and nearby islands. In November, she sparked diplomatic tensions by suggesting Japan could respond militarily to Chinese attacks on Taiwan that threaten Japanese territory. China retaliated with economic countermeasures including travel boycotts and export restrictions on rare earths used in military equipment.

With more than two-thirds control of the lower house, Takaichi could pursue constitutional amendments to formally recognize Japan's Self-Defense Forces as a military. This long-tabied goal would still require upper house approval and a national referendum. The victory also enables her to formulate a new national security strategy by year-end, likely accelerating military spending despite economic stimulus plans that may constrain the defense budget.

Quick Fact: Takaichi's LDP won 352 of 465 seats in Japan's lower house election.