BEIJING: China on Wednesday announced a 7.2% increase in its defence budget for 2025, maintaining a steady growth rate as it continues efforts to modernise its military in response to regional and global security challenges.
The increase, which brings total military spending to approximately $245 billion, was announced at the annual session of the National People’s Congress (NPC) on Wednesday.
China’s defence budget remains the second largest in the world, behind only that of the United States.
Analysts suggest that actual military expenditure may be significantly higher than official figures, as certain defence-related expenses are included under other budget categories.
According to the Pentagon, China’s real defence spending could be at least 40% higher than the announced figures.
Despite its slower economic growth rate, which the government has projected at around 5% for the year, China continues to prioritise military advancements.
President Xi Jinping has outlined a strategic plan to achieve full military modernisation by 2035. The modernisation drive includes the development of advanced missile systems, aircraft carriers, submarines, and surveillance technologies.
A report by the state-run Xinhua News Agency said that China’s defence budget has remained below 1.5% of its GDP over the past decade.
The report also criticised the United States for its significantly higher military expenditure, with Washington proposing a defence budget of $850 billion for 2025.
Speaking at the NPC, Chinese Premier Li Qiang reiterated Beijing’s stance on Taiwan, stating that while China prefers a peaceful resolution, it “resolutely opposes” any efforts to push for Taiwan’s formal independence.
“We will firmly advance the cause of China’s reunification and work with our fellow Chinese in Taiwan to realise the rejuvenation of the Chinese nation,” Li said.
The US Defence Department has also highlighted China’s expanding military reach, stating in its latest assessment that the PLA’s capabilities are increasingly focused on “projecting power far from China’s shores.”
The report noted that China’s navy, which is already the largest in the world by number of ships, is shifting from offshore defence to open-sea operations.
China’s military expansion has not been without internal challenges. President Xi has overseen a series of military reforms, including a crackdown on corruption within the PLA.
Two former defence ministers and a senior member of the Central Military Commission have been removed from their posts in recent years as part of an anti-corruption drive.
A senior analyst at the Mercator Institute for China Studies, Antonia Hmaidi, stated that China’s leadership is likely to prioritise military modernisation over broader social and economic reforms.
“Those resources are more important to the Communist Party’s goal of advancing a techno-industrial agenda and strengthening military capabilities,” Hmaidi said.
