Japan has seen major shifts in its defense and security policies, creating "significant negative effects" on the regional strategic balance, a report from a think tank said on Tuesday.

Observers said that Japan's rapid military buildup has included offensive hardware, has contributed to Tokyo's increasing attempts to develop a full-fledged force, and places high value on island-operation capabilities amid maritime tensions with China.

The report assessing Japanese military power last year, released by the China Strategic Culture Promotion Association, said the administration of Japanese Prime Minister Shinzo Abe has "outpaced" its predecessors in pursuing so-called defense normalization and the status of a major military power.