China raises Defence Budget by 10% to USD 275 Billion

Beijing, March 5: Amid ongoing war , China on Thursday announced a significant increase in its defence budget, raising military spending by more than 10 per cent to approximately USD 275 billion as the country continues its push to modernise its armed forces and narrow the gap with the United States military.

Chinese Premier Li Qiang revealed the new allocation while presenting the government’s annual work report to the National People's Congress (NPC), the country’s top legislative body, currently meeting in Beijing.

According to the report, China plans to allocate around 1.9 trillion yuan (about USD 275 billion) for national defence this year. The increase represents roughly USD 25 billion more than the previous year’s defence budget, reflecting Beijing’s continued emphasis on strengthening its military capabilities amid a complex global security environment.

China has been steadily raising its defence spending for decades as it works to modernise the People's Liberation Army (PLA). The modernisation drive includes investments in advanced weapons systems, naval expansion, cyber warfare capabilities, and cutting-edge technologies such as artificial intelligence and hypersonic missiles.

Officials say the increased spending is necessary to safeguard national sovereignty, territorial integrity, and development interests. In his report, Li stressed that the country will continue to advance military reforms, improve combat readiness, and integrate technological innovation into defence development.

Despite the rise, the government maintained that China’s defence expenditure remains “relatively modest” when measured against several key indicators. The report noted that China’s military spending accounts for a smaller share of its gross domestic product compared with some major powers. It also highlighted relatively lower per-capita defence expenditure and spending per military personnel.

Analysts say the increase reflects Beijing’s long-term strategic goal of transforming the PLA into a “world-class military” by the middle of the century. China has also been expanding its naval presence, developing next-generation aircraft and strengthening its missile forces as part of this effort.

The latest defence budget announcement comes at a time of heightened geopolitical tensions in the Indo-Pacific region and growing strategic competition between China and the United States. Washington remains the world’s largest military spender, with defence outlays far exceeding those of any other nation.

China’s leadership, however, continues to insist that its military development is defensive in nature and aimed at protecting national security and regional stability.

The budget proposal is expected to be formally approved during the ongoing NPC session, which typically endorses government spending plans with little opposition.