China’s defence spending is expected to increase by 7.2% this year, matching last year’s figure, amid rising geopolitical tensions. The country’s military budget now stands at 1.78 trillion yuan ($245.65 billion), which is well above China’s economic growth target of roughly 5%.
The increase in defence spending reflects Beijing’s ambitions for continued military modernisation despite the challenges posed by a sluggish economy and mounting tensions with Taiwan, Ukraine, and other regional actors. The country aims to complete full military modernisation by 2035.
This year’s report highlights the importance of combat readiness and scientific and strategic improvements, as well as pledges to “continue improving the political conduct of the military.” Analysts say this is an effort to address corruption scandals within the People’s Liberation Army (PLA).
The move comes amid increased scrutiny from regional military attaches, who note that the emphasis on combat readiness will lead to further intense drills and deployments around Taiwan. The Chinese naval ships staged an unprecedented live-fire drill in the Tasman Sea in February, forcing commercial aircraft to be diverted.
China remains the world’s second-largest military spender behind the United States, whose proposed military budget for 2025 is $850 billion. Analysts say Beijing is trying to project stability with moderate language and stable defence spending, even as it grows in strength.
Source: https://www.reuters.com/world/china/china-maintains-defence-spending-increase-72-2025-03-05