BEIJING: China on Thursday unveiled a seven per cent increase in its defence budget for 2026, signalling continued military expansion as tensions persist with the United States, Taiwan and rival claimants in the South China Sea.
According to budget documents released at the opening of the country’s annual “Two Sessions” political gathering, Beijing will allocate 1.9096 trillion yuan to defence this year, equivalent to about $276.8 billion.
The move reflects China’s long-term strategy to strengthen its military capabilities while reinforcing its territorial ambitions. Although China still spends far less than the United States in overall defence terms, it has maintained annual military budget growth of roughly seven to eight per cent for nearly a decade.
Analysts say the latest increase is expected to support pay raises for personnel, expanded training programmes, military activity around Taiwan, cyber capabilities and advanced weapons procurement.
The budget announcement also comes as China presses ahead with an anti-corruption drive within the People’s Liberation Army, a campaign that has already led to the removal of senior military figures.
Chinese commentators argue that a stronger military is essential for protecting national interests and resisting outside pressure, according to AFP.
Beijing has consistently said its defence policy is defensive in nature, though it views Taiwan as part of its territory and has continued to assert its claims in disputed waters, including the Spratly Islands.
Security experts note that while China’s defence spending remains modest as a share of GDP compared with some major powers, its rapid military modernisation is drawing close attention across the region.
Neighbouring states, especially those involved in maritime disputes with Beijing, have been deepening defence ties with Washington in response. Taiwan has been weighing higher military spending of its own as pressure from the mainland grows.
The Philippines has widened military cooperation with the US, while Japan has approved a record defence budget as part of efforts to expand its security posture.
Despite China’s naval strength and growing arsenal, analysts say the United States retains key advantages in global logistics, stealth systems, submarines, combat experience and military alliances.
As a result, the balance of power between the two sides remains a central question in Asia’s evolving security landscape.
