China is set to increase its defence spending by 7.2% this year, which is a slightly faster pace than last year's increase and faster than the government's modest economic growth forecast. The national budget, which was released on Sunday, showed that 1.55 trillion yuan ($224 billion) had been allocated to military spending. This year's increase marks the eighth consecutive single-digit rise in defence spending.
Premier Li Keqiang urged the armed forces to boost their combat preparedness, with military operations, capacity building and combat preparedness needing to be "well-coordinated in fulfilling major tasks". In his state-of-the-nation address to the largely rubber-stamp legislature, he said the armed forces needed to work towards the goals for the centenary of the People's Liberation Army in 2027.
The defence budget will be closely watched by China's neighbours and the United States, as concerns grow over Beijing's strategic intentions and military development, particularly as tensions rise over Taiwan. However, Beijing says its military spending is for defensive purposes and is a low percentage of its GDP.
The spending increase outpaces the targeted economic growth of around 5%, which is slightly below last year's target, as the world's second-largest economy faces domestic headwinds. China's reported defence budget in 2023 is about one quarter of the proposed U.S. spending, although many diplomats and foreign experts believe Beijing under-reports the real number. The fiscal 2023 U.S. defence budget authorises $858 billion in military spending and includes funding for purchases of weapons, ships and aircraft, as well as support for Taiwan and Ukraine, which is fighting an invasion by Russia.
FAQs:
Q1: Why is the defence budget increase a concern for China's neighbours and the US?
China's neighbours and the US are concerned about Beijing's strategic intentions and military development, particularly as tensions rise over Taiwan.
Q2: What is the difference between China's reported defence budget and the proposed US spending?
China's reported defence budget in 2023 is about one quarter of the proposed US spending, although many diplomats and foreign experts believe Beijing under-reports the real number.
