Japan will continue to watch China's defense policy and military power closely, Foreign Minister Fumio Kishida said Tuesday, as China envisions a third straight year of double-digit increase in its military spending.

China projects its defense spending to grow 10.7 percent from the previous year to 740.62 billion yuan, or about ¥11 trillion, in the fiscal 2013 budget to be proposed to an annual session of the National People's Congress, which opened the same day.