China boosts defence budget by 7.2% to $232 billion

China Defence budget: China has announced a 7.2 per cent increase in its defence budget, reaching $232 billion, signaling its commitment to the extensive modernization of its military. The move comes amidst ongoing tensions involving Taiwan, disputes in the South China Sea, border frictions with India, and heightened rivalry with the United States.

As the world's second-highest spender on defence after the U.S., China allocated 1.67 trillion yuan (approximately USD 232 billion) for defense spending. In comparison, the U.S. defense budget for the previous year amounted to $886 billion. This increase mirrors the 7.2 per cent growth seen in China's defence budget last year, marking the eighth consecutive year of such an uptick.

China's defence budget, three times higher than that of India, remains a significant force on the global stage. Despite a slowdown in economic growth, China has proposed a modest five percent target for its economy this year while continuing to prioritize defense.

Territorial disputes with neighboring countries, including Taiwan, the South China Sea claims, and ongoing tensions with India, contribute to China's focus on military capabilities. The country perceives Taiwan as a rebel province, emphasizing reunification with the mainland, even by force if necessary. Additionally, China claims a majority of the South China Sea, leading to counterclaims from the Philippines, Vietnam, Malaysia, Brunei, and Taiwan.

The ongoing NPC (National People’s Congress) session, attended by President Xi Jinping, plays a crucial role this year due to recent military purges carried out by Xi. Observers note the removal of top military officials, including Defense Minister Gen Li Shangfu, and nine generals linked to the missile force for suspected violations.

Premier Li Qiang, presenting the defense budget hike, emphasized strengthening the military's all-around training, combat readiness, and modernization of the military governance system. While there is no immediate war plan, experts predict China will continue steady growth in military spending to achieve its reunification goals and narrow the military power gap with the U.S.

The Chinese military has set a target of 2027 to achieve modernization goals, paving the way to become a "world-class" military power by 2049. Li stressed the government's support for national defense development and the armed forces, with a focus on consolidating unity between the military, government, and the people.

On the Taiwan issue, Li reiterated China's commitment to the one-China principle, opposing separatist activities and external interference. The defense budget increase underscores China's strategic priorities, balancing modernization efforts with regional and global geopolitical dynamics.