China Increases Defense Budget by 7.2% Amid Rising Regional Tensions

On Wednesday, Chinese officials announced a 7.2% hike in their defense spending for this year during the National People's Congress, the country's annual legislative gathering. Though significant, this increase mirrors last year's growth rate and marks a decline from previous years when defense budget expansions frequently reached double digits. Experts note this moderation aligns with China's broader economic situation, as the government has targeted roughly 5% economic growth for the year.

Despite the moderation, China maintains the world's second-largest defense budget after the United States and operates the largest naval force globally. Experts and Pentagon officials often suggest that the actual military spending by China may exceed officially disclosed figures by more than 40%, as specific military-related expenditures are allocated under other budget categories.

Ongoing international tensions significantly impact China's military decisions. Disputes involving the U.S., Taiwan, Japan, and several neighbors claiming parts of the strategic South China Sea have spurred China to pursue advanced military capabilities. Technologies such as stealth combat aircraft, aircraft carriers, and nuclear weapon enhancements remain central to China's defense priorities.

The primary strategic objective of the People's Liberation Army, under China's ruling Communist Party, is asserting dominance over Taiwan, a democratic island self-ruled but considered by Beijing as part of Chinese territory. The dispute over Taiwan's status, reinforced by strong Taiwan-U.S. ties, continuously influences military preparations.

Recently, China dispatched a relatively limited force—five aircraft and seven naval ships—into areas surrounding Taiwan, significantly fewer than past incursions. These frequent Chinese missions aim to strain Taiwan's defenses, which, in response, have been strengthened by new and upgraded weapons systems provided by the U.S. and developed domestically.

Speaking at the congress, Premier Li Qiang emphasized that China favors resolving the Taiwan situation peacefully. However, he firmly stated China's opposition to the pursuit of Taiwanese formal independence and criticized foreign supporters advocating such moves.