By MARI YAMAGUCHI Associated Press

Japan on Wednesday released a near-final draft of its first national security strategy that calls for a stronger military amid the rise of China.

A panel appointed by Prime Minister Shinzo Abe issued the draft, saying changes in America's relative influence make it necessary for Japan to expand its alliances with other countries while also strengthening its long-standing ties with the U.S.

It raises concern about China's rapid military expansion with little transparency, as well as North Korea's nuclear and missile capabilities.

The panel, which also endorsed a near-final draft of a long-term defense guideline for Japan, which covers military policy for the next decade, shared a similar concern, and urged Japan to set up intelligence, early warning and surveillance activity to defend Japanese sea and air territory.

In order to protect its national security under such environment, Japan should "strengthen its own capability and expand its role," according to a copy of the draft summary. The presence of U.S. military in Japan under a bilateral security pact is "indispensable" as a deterrence, but should be complemented with Tokyo's own effort to step up missile defense and other arms capability, the report said.

Japan can contribute to peace and stability internationally, including in the Asia-Pacific region, by strengthening its diplomatic and defense capabilities, the report said.

To defend Japan's territorial claims in areas disputed with China, the government should step up its maritime defense in southwestern Japan, the report said, citing Beijing's recent intrusion into airspace and Japanese waters around the contested East China Sea islands.

The report, called the National Security Strategy, says Japan should relax bans on arms exports as a way to step up its international peacekeeping cooperation.

Separately, the defense policy draft proposed expanding Japan-U.S. joint military exercises and surveillance activities to deal with the region's growing "gray zone" amid China's rise and North Korea's military threat. The draft urged Japan to strengthen defense ties with South Korea in three-way cooperation with the U.S., and to expand ties with European defense mechanisms.

"We have been working to rebuild our national security policy with a firm commitment to defend the people's lives and possessions," Abe said in remarks to the panel Wednesday. He called the first strategy report "a historic document."

The Cabinet is expected to approve the strategy report next week along with Japan's overall defense guidelines. The strategy is part of Abe's efforts to strengthen Japan's national security.