China's defence budget growth slows to 7 per cent in 2026

Beijing — China’s defence budget growth is expected to slow to 7 per cent in 2026, according to a draft report submitted to the national legislature for review on Thursday. This marks the 11th consecutive year of single‑digit growth in China’s defence budget. The growth rate was 7.2 per cent in 2023, 2024 and 2025. According to the 2026 budget draft, about 1.9 trillion yuan (1 yuan = Rp2,446) will be allocated to national defence. China’s defence spending remains relatively moderate when viewed against key indicators, including its share of gross domestic product (GDP), defence expenditure per capita, and defence expenditure per military personnel. China has consistently kept defence spending below 1.5 per cent of GDP for years. NATO estimates suggest that nearly all its members reached the defence expenditure target of 2 per cent of GDP by 2025, and they have committed to continue increasing defence spending to 5 per cent of GDP by 2035. China’s neighbour, Japan, has increased its defence budget for 13 consecutive years, with around a 60 per cent rise in the last five years. In fiscal 2025, Japan’s defence expenditure per capita and per military personnel were three times and more than twice those of China, respectively. With rising global instability, observers expect world military expenditure to rise again this year, with Western countries contributing most of the increase. China asserts that adjusting its defence budget to meet national security needs is a matter of sovereign right, while maintaining stable and moderate growth in military spending to safeguard sovereignty, security and development interests amid a rapidly changing world. China adheres to a defensive national defence policy. It is the only major country in the world to explicitly enshrine ‘peaceful development’ in its Constitution and in the charter of the ruling party. China also plays a steadfast role in safeguarding peace and stability. It is the second-largest funder of United Nations peacekeeping operations and the largest contributor among permanent members of the UN Security Council. Chinese officials have stated that regardless of the level of development reached, China will never seek hegemony or engage in expansionism.