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Since Donald Trump’s return to power, the United States has been reducing its expenditures, leading to job cuts in government sectors and cuts in foreign aid. Under Trump’s administration, DOGE, led by Elon Musk, has been established to oversee financial adjustments. Meanwhile, China has once again increased its defense budget by 7.2% this year, matching last year’s growth.
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The Xi Jinping government presented this budget during the National People’s Congress (NPC) session. According to the Pentagon and defense analysts, China’s actual military spending could be 40% higher than the official figures.
China’s Defense Spending Grows Amid Economic Slowdown
China’s economic growth target for this year has been set at around 5%, reflecting concerns over a slowdown. Despite economic challenges, China still maintains the world’s second-largest defense budget, following the US, and possesses the largest navy globally.
Defense Budget Rises Amid Regional Tensions
China has been increasing its military spending amid rising tensions with its neighbors and the US over Taiwan, Japan, and territorial disputes in the South China Sea. The budget is focused on advanced military technology, including stealth fighters, aircraft carriers, and nuclear weapons.
On Tuesday, China hinted at this budget increase, stating that “peace and sovereignty can only be protected through strength.” Last year, China raised its defense budget by 7.2% to approximately $232 billion (1.67 trillion yuan)—over three times India’s defense budget. The country continues large-scale military modernization across all branches of its armed forces.
China Justifies Military Spending
China’s rising military expenditure has raised global concerns, particularly due to its rapid expansion of aircraft carriers, advanced naval ships, and modern stealth aircraft.
Defending the spending, NPC spokesperson Lu Qinjian stated: “Strength is necessary to safeguard peace.”
He further explained that a strong national defense allows China to protect its sovereignty, security, and development interests, fulfill its international responsibilities, and maintain global peace and stability.
According to Chinese officials, the country’s defense budget as a percentage of GDP remains below the global average. Since 2016, China’s annual defense spending growth has stayed in single digits, and for the past several years, its defense budget has been less than 1.5% of GDP.
Despite these reassurances, China’s continued military expansion is being closely watched by the US and its allies, especially amid rising global tensions.