China Increase Defense Budget by 7.2% in 2025

China announced on Wednesday that it will raise its defense budget by 7.2% this year.

The budget was revealed during the National People’s Congress, the country’s annual legislative session. However, the Pentagon and various experts estimate that China’s actual military expenditure could be at least 40% higher, as some defense-related costs are allocated under different budget categories.

This year’s increase mirrors last year’s percentage growth, significantly lower than the double-digit rises seen in previous years, reflecting the broader slowdown in China’s economy. The government has set an economic growth target of approximately 5% for the year.

Despite the moderated increase, China’s defense spending remains the second highest in the world, behind only the United States. The country also possesses the world’s largest navy.

Ongoing tensions with the U.S., Taiwan, Japan, and other nations with competing territorial claims in the South China Sea are driving investments in advanced military technologies, including stealth fighters, aircraft carriers, and nuclear weaponry.

The People’s Liberation Army, the military wing of China’s ruling Communist Party, has established bases on artificial islands in the South China Sea, though its primary focus remains Taiwan. Beijing considers the self-governing island to be part of its territory, despite Taiwan’s close ties with the United States.

On Wednesday, China deployed a relatively small force of five aircraft and seven naval vessels near Taiwan, following a recent large-scale operation involving dozens of aircraft. These maneuvers are part of an ongoing strategy to weaken Taiwan’s defenses, which have been reinforced by upgraded U.S. F-16 fighter jets, tanks, missiles, and domestically produced weaponry.

Speaking at the National People’s Congress, Premier Li Qiang reaffirmed China’s preference for a peaceful resolution to the Taiwan issue but warned against those advocating for the island’s formal independence, stating that Beijing "resolutely opposes" such efforts and the foreign entities supporting them.