China to reportedly boost defense spending by 7%, slowest pace since 2021
#China defense budget #Military spending increase #Geopolitical tensions #National People's Congress #Defense modernization #Middle East conflict #Off-budget military spending
📌 Key Takeaways
- China plans 7% defense spending increase in 2026, slowest since 2021
- China has budgeted 7.2% annual increases for the past three years
- Government emphasizes advanced combat capabilities and military modernization
- Official figures likely understate actual defense spending
📖 Full Retelling
China's government plans to increase its defense spending by 7% in 2026, according to Reuters citing official documents, marking the slowest increase in military expenditure since 2021 amid escalating Middle East conflicts and rising geopolitical tensions. The proposed budget follows three consecutive years of 7.2% annual increases in defense spending. Beijing had previously increased military expenditure by 7.1% in 2022 and 6.8% in 2021, according to official data. The announcement came as China prepared to kick off its 8-day National People's Congress, an annual parliamentary meeting that officially approves the budget and development goals for the year. The government work report released Thursday also outlined plans to accelerate the development of advanced combat capabilities and the 'high-quality' modernization of China's national defense and armed forces. This includes highlighting China's first domestically built aircraft carrier, the Fujian, which was commissioned in November 2025. Some of China's latest weapon systems, including long-range missiles, were displayed during a military parade in September 2025. Despite the official figures, analysts believe China's defense budget is understated, excluding significant 'off-budget' items. According to the U.S. Department of Defense's 2025 report, Beijing spent between $304 billion and $377 billion on defense in 2024—32% to 63% higher than its officially announced budget of $231 billion. China accounted for nearly 44% of Asia's defense spending in 2025, up from 39% in 2017, making it second only to the U.S. in military spending globally.
🏷️ Themes
Military Spending, Geopolitical Tensions, Defense Modernization
📚 Related People & Topics
List of modern conflicts in the Middle East
List of Middle Eastern conflicts since 1914
This is a list of modern conflicts ensuing in the geographic and political region known as the Middle East. The "Middle East" is traditionally defined as the Fertile Crescent (Mesopotamia), Levant, and Egypt and neighboring areas of Arabia, Anatolia and Iran. It currently encompasses the area from E...
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Connections for List of modern conflicts in the Middle East:
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Iran
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Strait of Hormuz
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Nuclear program of Iran
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Civilian casualty
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Original Source
In this article CAAS Follow your favorite stocks CREATE FREE ACCOUNT China's liquid-fueled intercontinental strategic nuclear missiles DongFeng-5C, which have a global strike range, pass through Tian'anmen Square during the V-Day military parade on September 3, 2025 in Beijing, China. China News Service | China News Service | Getty Images BEIJING — China plans to increase its defense spending by 7% this year, Reuters reported Thursday, citing official documents due for public release later in the day. That would mark the slowest increase in its annual military expenditure since 2021. The proposal comes as conflict in the Middle East has escalated, amid a broader rise in geopolitical tensions. For the last three years, China has budgeted a 7.2% annual increase in defense spending. Beijing had increased spending by 7.1% in 2022 and 6.8% in 2021, according to official data. According to a government work report released Thursday, Beijing will speed up the development of advanced combat capabilities, as well as the "high-quality" modernization of its national defense and armed forces. The working report also highlighted China's first domestically built aircraft carrier, the Fujian, which was commissioned in November 2025. Some of China's latest weapon systems, including long-range missiles, were displayed during a military parade in September. China is set to kick off its 8-day National People's Congress on Thursday, an annual parliamentary meeting that officially approves the budget and development goals for the year. Last year, China proposed a national defense budget of 1.78 trillion yuan ($244.99 billion at the time). However, analysts believe the official figures are understated and exclude significant "off-budget" items. According to the U.S. Department of Defense's 2025 report to Congress on China's military, Beijing spent between $304 billion and $377 billion on defense in 2024 — about 32% to 63% higher than its officially announced budget of $231 billion. Beiji...
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