Beijing, March 5 China announced on Thursday that it would increase its defence budget by over 10 per cent, to USD 275 billion, about USD 25 billion more than last year, as it accelerates the modernisation of its armed forces to keep pace with the US military.
Approximately 1.9 trillion yuan (about USD 275 billion) will be allocated to national defence, Chinese Premier Li Qiang announced in his work report presented to the National People's Congress (NPC) on Thursday.
The report stated that China's defence spending remains comparatively modest across key indicators, including its share of GDP, per capita defence expenditure, and defence expenditure per military personnel.
Last year, China announced a 7.2 per cent increase in its national defence budget to USD 249 billion for 2025, which is a USD 17 billion increase compared to 2024.
China's defence spending, second only to that of the US, has been growing over the years, putting enormous pressure on India and other neighbouring countries to increase their defence budgets in the face of economic challenges.
In 2024, China increased its defence budget by 7.2 per cent to approximately USD 232 billion (1.67 trillion yuan) – more than three times that of India – as it continues with the massive modernisation of all its armed forces.
China's defence budget figures are viewed with skepticism given the massive military modernisation, including the construction of aircraft carriers, the rapid construction of advanced naval ships, and the development of modern stealth aircraft, all being carried out at a feverish pace by the Chinese military.
Meanwhile, China lowered its GDP target to 4.5 to 5 per cent for this year, in the face of Trump's trade tariffs, the worsening global crisis following the US-Iran war, and economic headwinds due to the property market slump and unemployment crisis.
China has been setting a five per cent target for GDP for the past three years, amid growing domestic economic challenges. This year, the target has been lowered to 4.5 to 5 per cent for the first time.
