Japan's decision to build two new naval vessels equipped with Aegis missile interceptors — an alternative to a scrapped plan to deploy a land-based system — could prompt further armament by potential adversaries, security experts have warned.

On Friday, the Cabinet of Prime Minister Yoshihide Suga approved deployment of the ships and possible installation of interceptor missiles capable of countering various aerial threats, including cruise missiles.

Japan has been concerned about the balance of power in the Indo-Pacific region amid a deterioration in U.S.-China relations, seeing Beijing as seeking to change the strategic status quo in the East and South China seas through force and coercion with its increasing military capability. It has also been threatened by North Korea's missile development.