Tokyo and Washington agreed Friday to boost joint production of defence equipment including missiles, and expand their military presence in waters southwest of mainland Japan, as China ramps up pressure on its Asian neighbour.

The agreement came after Japanese defence minister Shinjiro Koizumi met Pentagon chief Pete Hegseth in Washington, where they also pledged to further cooperation on supply chains including critical minerals.

Japan is embroiled in a heated diplomatic spat with China, triggered by Prime Minister Sanae Takaichi’s suggestion in November that Japan could intervene militarily if China attacks Taiwan.

China, which regards Taiwan as its own territory, reacted angrily, blocking exports to Japan of “dual-use” items with potential military applications, fuelling worries in Tokyo that Beijing could choke supplies of much-needed rare earths.

As the “security environment is rapidly growing severe” in Asia, “the two ministers confirmed the Japan-US alliance remains absolutely unwavering”, the statement released by Tokyo’s defence ministry said.

They agreed to further advance joint production of air-to-air missiles and surface-to-air interceptors.

The allies also agreed to work on the expansion of “more sophisticated and practical joint drills in various locations including the Southwest region”, the statement said.