China to hike defence budget by 7% amid rising global security tensions
China to hike defence budget by 7% amid rising global security tensions
China’s defence outlays are closely watched as a barometer of Beijing’s strategic priorities as it presses ahead with military modernisation.
BEIJING: China will raise its defence budget for the year by 7 per cent, a slight dip from last year’s 7.2 per cent increase amid strategic rivalry with the United States, tensions in the Taiwan Strait and a widening conflict in the Middle East.
The pot will grow to 1.91 trillion yuan (US$276.9 billion), according to a draft budget report seen by CNA on Thursday (Mar 5). The document is set to be released shortly when Chinese Premier Li Qiang delivers the government work report at the opening session of the National People’s Congress (NPC).
The figure marks the 11th consecutive year of single-digit growth in the national military budget. China has raised its annual defence budget by 7.2 per cent for the past three years.
The topline figure is released annually at the Two Sessions, which comprise the NPC gathering and the meeting of the country’s top political advisory body. This year’s meetings come as China begins implementing its 15th Five-Year Plan, which will shape economic strategy through 2030.
China’s defence outlays are closely watched as a barometer of Beijing’s strategic priorities amid sustained tensions in the Taiwan Strait and the South China Sea, as well as intensifying Sino-US competition.
The escalating conflict in the Middle East - which is testing China’s oil security and Gulf partnerships - has further heightened global security concerns.
While Beijing maintains that its military spending is defensive in nature and remains far below that of Washington, analysts track the annual increase as a signal of the pace and direction of the People’s Liberation Army’s modernisation drive.
China has pledged to complete the modernisation of its armed forces by 2035 and build a “world-class” military by mid-century.
The drive has also unfolded alongside a sweeping anti-corruption campaign in the armed forces that has ensnared a growing number of senior commanders.