Taiwan, Taipei – China announced plans to raise its military budget by 7.2% this year, continuing its effort to expand its armed forces to support its territorial claims and challenge the U.S. military dominance in Asia. Currently, China’s military expenditure ranks second globally, following the United States, and it boasts the world’s largest navy.
The new budget, totalling approximately $245 billion, was revealed at the annual National People’s Congress gathering. However, some military analysts and the Pentagon suggest that China’s actual defense spending could be over 40% higher due to certain expenditures being categorized under other budgets. This year’s increase matches last year’s, marking a departure from past years’ double-digit growth, which aligns with a general economic slowdown as China aims for about 5% economic growth this year.
Heightened tensions with the U.S., Taiwan, Japan, and neighboring countries with competing claims in the South China Sea contribute to China’s investment in advancing military technologies. This includes developing stealth fighters, expanding its fleet of aircraft carriers from three to four, and growing its nuclear weapons arsenal. China typically attributes these budget increases to routine exercises, maintenance, and improvements in the conditions for its 2 million military personnel.
The People’s Liberation Army, the military wing of the ruling Communist Party, has constructed bases on artificial islands in the South China Sea, focusing primarily on asserting control over Taiwan. Taiwan, which operates as an independent democracy but is claimed by Beijing, shares close ties with the U.S. Recently, China dispatched a small fleet of planes and ships near Taiwan, following a massive show of aircraft force. These operations aim to undermine Taiwan’s defenses, which have received enhanced equipment including upgraded U.S. F-16s, missiles, and domestically developed weapons.
During the Congress, Premier Li Qiang stated China’s preference for a peaceful resolution on the Taiwan issue while firmly opposing movements toward formal Taiwanese independence and their international supporters. Li emphasized, “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.”
In response, Taiwan’s defense minister announced plans to increase the island’s defense budget amidst swiftly evolving global dynamics and rising threats from opponents. As economic growth slows, China is expected to prioritize strategic objectives over social and economic reforms, as noted by a senior analyst at the Mercator Institute for China Studies. This shift reflects the Chinese Communist Party’s goals of furthering a technological-industrial agenda and modernizing the military.
Chinese President Xi Jinping, in charge of the military, has been pushing significant reforms, leading to the removal of senior military officials, including two past defense ministers and the missile corps head. Despite these changes, whether they will diminish the military’s influence remains uncertain.
The state-run Xinhua News Agency commented positively on maintaining defense spending at less than 1.5% of GDP over the past decade, while criticizing the U.S. for not reducing its military budget. Xinhua asserted that China will not seek domination or engage in expansionism, describing its stance as defensive. The U.S. Defense Department’s past reports have depicted China’s ambition to project power beyond its coastal areas, noting the navy’s shift to open seas protection and the air force’s aspiration to operate on a global scale.
