Announcing that China aims for an economic growth of 5 per cent in 2025, Beijing said on Wednesday, the country will boost its defence spending by 7.2 per cent this year, which analysts say reflect Beijing's ambitions for continued military modernisation and growing geopolitical challenges.
Premier Li Qiang presented the figure in a report at the opening session of the National People's Congress, the annual meeting of China's legislature. US President Donald Trump has announced a 10 per cent tariff on Chinese goods in February -- which increased to 20 per cent on Tuesday. China has retaliated with its own tariffs on US goods and vowed to fight the trade war to a "bitter end".
The renewed trade tensions come as China is dealing with sluggish GDP growth and declining domestic consumer demand, brought on by a collapse in the real estate market. The International Monetary Fund has predicted China's economy to grow 4.6% in 2025, down from 5% in 2024.
China will also boost its defense spending by 7.2% in 2025, maintaining a steady increase in the sector's growth as the Chinese economy faces challenges from both home and abroad.The draft budget was also presented during the country's rubber-stamp National People's Congress (NPC) parliament. The same 7.2% increase was announced last year.
The planned defence expenditure for the country is 1.784665 trillion yuan (about $249 billion - over three times that of India) this year, according to a draft budget report submitted to China’s Parliament by Premier Li Qiang. Last year, China increased its defence budget by about $232 billion (1.67 trillion yuan) as it continues with the massive modernisation of all its armed forces. China's defence budget figures are viewed with scepticism in the light of massive military modernisation, including building aircraft carriers, rapid construction of advanced naval ships and modern stealth aircraft being carried out at a feverish pitch by the Chinese military.
China's defense budget has more than doubled since 2013, shortly after President Xi Jinping came to power. The Asian superpower is the world's biggest military spender after the US. The country's increasing defense spending is a rising concern to the self-ruled Taiwan, which is considered by China as part of its territory.
In Wednesday's annual report, Chinese Premier Li Qiang wrote: "We will firmly advance the cause of China's reunification and work with our fellow Chinese in Taiwan to realise the glorious cause of the rejuvenation of the Chinese nation." Last year, Li had replaced the descriptor "peaceful" with wanting to "be firm" while speaking of reunification with Taiwan.This year, he has a new mention of wanting to work with "fellow Chinese in Taiwan" to rejuvenate the nation (with inputs from PTI).