March 05, (THEWILL) — China has increased its defence budget to about $275 billion for the year, marking a fresh push to modernise its military amid growing geopolitical tensions, particularly in the Middle East and across Asia.
Speaking on Thursday during the presentation of his government work report to the National People’s Congress (NPC), Chinese Premier Li Qiang announced that approximately 1.9 trillion yuan would be allocated to national defence in 2026.
The new budget represents an increase of roughly $25 billion from the previous year’s defence allocation and underscores Beijing’s sustained efforts to upgrade its armed forces as it seeks to close the gap with the United States military.
Despite the increase, the report presented to the NPC argued that China’s defence expenditure remains relatively modest when measured against key indicators such as its share of Gross Domestic Product (GDP), per capita defence spending and defence spending per military personnel.
In 2025, China had already raised its defence budget by 7.2 per cent to about $249 billion, representing a $17 billion increase from the 2024 allocation.
China’s military spending is currently the second largest in the world after that of the United States and has grown steadily over the past decade, reflecting the country’s ambition to build a world-class military.
The consistent rise in Beijing’s defence spending has also heightened security concerns among neighbouring countries, including India and several Asia-Pacific nations, many of which face mounting pressure to increase their own military budgets despite economic constraints.
In 2024, China increased its defence budget by 7.2 per cent to about $232 billion, or 1.67 trillion yuan — more than three times the size of India’s military expenditure at the time.
However, China’s official defence figures continue to draw scepticism from some analysts, who argue that the actual spending may be higher given the scale of the country’s ongoing military modernisation.
The Chinese military has in recent years accelerated the development of advanced weapons systems, including new aircraft carriers, rapidly expanding fleets of modern naval ships, and next-generation stealth aircraft as part of its drive to enhance combat capabilities and project power globally.
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