TOKYO, Japan (AFP) — Japan's government approved a major defense policy overhaul Friday, including a significant spending hike to acquire new missiles that can strike far-flung enemy launch sites.

The moves are outlined in three defense and security documents approved by the cabinet Friday.

They describe Beijing as "the greatest strategic challenge ever to securing the peace and stability of Japan," as well as a "serious concern" for Japan and the international community.

In response, the government plans to raise its defense spending to two percent of gross domestic product by fiscal 2027, bringing Japan in line with North Atlantic Treaty Organization member guidelines.

That marks a significant increase from historic spending of around one percent and has sparked criticism over how it will be financed.

The money will fund projects including the acquisition of what Japan calls "counterstrike capacity" as the documents warn that Japan's current missile interception systems are no longer sufficient and a "counterstrike capacity is necessary."

The counterstrike capacity will involve both upgrading existing Japanese weaponry but also buying United States-made Tomahawk missiles, reportedly up to 500.

Other changes include the establishment of a permanent joint command for Japan's armed forces as well as enhancement of the country's coastguard.

China's foreign ministry on Friday urged Japan to "reflect on its policies".

"Japan disregards the facts, deviates from the common understandings between China and Japan and its commitment to bilateral relations, and discredits China," ministry spokesperson Wang Wenbin told reporters of the new stance.