BEIJING: China has announced a 7.2 per cen increase in its defence budget for 2025, allocating $249 billion (1.78 trillion yuan) as it accelerates military modernisation against the backdrop of rising global trade tensions.
The move, unveiled in Premier Li Qiang’s budget speech to the National People’s Congress (NPC) on Wednesday, comes as China navigates economic headwinds, geopolitical frictions and a shifting trade landscape.
The latest hike keeps China’s defence budgetat three times that of India’s $78.8 billion (Rs 6.81 lakh crore) and second only to the US, which has proposed a defence budget exceeding $890 billion.
Despite Beijing’s claims that its military spending remains under 1.5 per cent of GDP, analysts view the budget with scepticism, pointing to its ambitious naval expansion, stealth aircraft development, and investment in cyber and space warfare capabilities.
Premier Li, echoing President Xi Jinping’s call for military self-reliance, underscored the need for “combat readiness” in a world marked by strategic uncertainty. “We will accelerate the development of modern combat capabilities, safeguard our sovereignty, and defend our economic and security interests,” he said.
The budget increase coincides with mounting trade tensions, particularly with the US and Europe, over technology restrictions, tariffs, and supply chain realignments. With economic pressure mounting, China’s military spending signals a dual-pronged approach – ensuring defence preparedness while asserting its strategic position amid global economic shifts.
Lou Qinjian, spokesperson for the NPC, defended the spending, arguing that “peace needs to be safeguarded with strength.” He highlighted that China’s military budget has seen single-digit annual growth since 2016, positioning it as a “responsible” power.
As the world watches China’s economic trajectory and its evolving role in global trade, the latest defence budget underscores Beijing’s long-term vision – fortifying its military while adapting to an increasingly protectionist global economy.
