The U.S. government said Thursday, Jan. 2, it has approved the sale of two types of advanced medium-range air-to-air missiles and other related equipment to Japan. Officials said the deal will cost an estimated $3.64 billion.

Officials said Japan is seeking to buy up to 1,200 missiles in the deal.

The sale is expected to strengthen Japan’s deterrence against threats from China in the region.

U.S. government officials said in a statement, the deal will “improve Japan’s capability to meet current and future threats by defending its homeland.”