China to boost defense budget by 7.2% as military modernization continues

China announced on March 5 that it will increase its defence budget by 7.2% this year, continuing its efforts to modernize its military.

The country’s defence spending remains the second highest in the world, following the United States and its navy is the largest globally in terms of fleet size, Caliber.Az reports referring to US media.

The budget, amounting to approximately $245 billion, was disclosed during the annual session of the National People’s Congress, China’s legislative body. Some analysts, including the Pentagon, suggest that China’s actual defence expenditures could be significantly higher, with certain military-related costs allocated under different budget categories.

The 7.2% increase matches last year’s growth rate and is lower than the double-digit increases seen in previous years. This reflects a broader economic slowdown, with China’s leadership setting a national growth target of around 5% for the year.

Regional tensions are considered a key factor in China’s continued investment in military advancements, including next-generation stealth aircraft, aircraft carriers — currently numbering three, with a fourth in development — and an expanded nuclear arsenal. China attributes its military budget increases to routine exercises, maintenance, and efforts to improve conditions for its approximately two million service members.

The People’s Liberation Army, which operates under the authority of the ruling Communist Party, has established military installations on artificial islands in the South China Sea. However, a primary focus of its military strategy remains Taiwan, which Beijing regards as part of its territory. Taiwan, a self-governed island with close ties to the United States, has been the subject of ongoing military manoeuvres by China.

On March 5, China deployed a smaller group of five aircraft and seven naval vessels near Taiwan, following a larger deployment of dozens of aircraft in recent days. These activities are seen as part of broader military operations in the region, while Taiwan has responded by strengthening its own defences. The island has recently acquired upgraded US-made F-16 fighter jets, tanks, and missile systems, alongside domestically produced weaponry.

Speaking at the National People’s Congress, Chinese Premier Li Qiang reiterated Beijing’s preference for a peaceful resolution regarding Taiwan. However, he also emphasized opposition to any movement toward formal independence and external support for such efforts.

“We will firmly advance the cause of China’s reunification and work with our fellow Chinese in Taiwan to realize the glorious cause of the rejuvenation of the Chinese nation,” Li stated.

In response to the regional security situation, Taiwan’s defence minister recently affirmed plans to further increase military spending, citing a rapidly evolving international landscape and growing security challenges.

By Tamilla Hasanova