China announced a 7 percent increase in defence spending for 2026, marking its lowest rise in five years but still outpacing economic growth targets and military budgets across Asia. Premier Li Qiang unveiled the figure at the opening of parliament’s annual meeting, where he also set a GDP growth forecast of 4.5 to 5 percent.
Li said the government would strengthen combat readiness and accelerate the development of advanced capabilities to safeguard sovereignty and security. He emphasized that President Xi Jinping holds ultimate command responsibility over the armed forces.
The increase continues a steady trend in military investment, with spending consistently growing at rates aligned with GDP and inflation. Analysts noted that China has been expanding its arsenal of missiles, ships, submarines and surveillance systems as part of its goal to modernise the military by 2035.
The announcement comes during a sweeping purge of top military ranks. Senior generals Zhang Youxia and He Weidong have faced disciplinary investigations, leaving gaps in the Central Military Commission. Observers believe the crackdown reflects Beijing’s intent to tighten oversight of military spending while maintaining the Communist Party’s absolute control over the armed forces.
Regional analysts expect China to intensify drills and deployments around Taiwan ahead of the centenary of the People’s Liberation Army next year. Li reiterated Beijing’s opposition to separatist forces and external interference, vowing to advance national reunification. Taiwan’s government responded by warning that China’s rising defence budget poses a threat to the island’s security.
Japan also expressed concern, with Chief Cabinet Secretary Minoru Kihara saying China lacks transparency in its defence spending. Despite these tensions, Tokyo pledged to continue efforts to build stable ties with Beijing.
According to the International Institute of Strategic Studies, China’s share of Asia’s military expenditure rose to nearly 44 percent in 2025, underscoring its dominance in regional defence budgets. Beijing’s 2026 allocation of 1.91 trillion yuan, or about 277 billion dollars, remains far below the United States’ defence bill of one trillion dollars.
