China announces defence budget increase of 7%

China's total defence spending is forecast by Janes Defence Budgets to reach nearly USD418 billion by 2030. (Janes Defence Budgets)

Beijing has proposed a 2026 defence budget of approximately CNY1.9 trillion (USD275 billion), China's state-owned Xinhua News Agency has reported. The new expenditure represents an increase of 7% over the 2025 allocation of CNY1.78 trillion.

The draft 2026 defence budget, submitted to the national legislature on 5 March, marks the 11th consecutive year of single‑digit growth in China's defence spending.

The 7% increase in China's 2026 defence budget represents a slight decrease over the 7.2% year-on-year defence spending growth recorded in the past three years.

China's official defence budget was CNY1.67 trillion in 2024 and CNY1.55 trillion in 2023. In 2022 the budget was CNY1.45 trillion, a year-on-year increase of 7.1%, and in 2021 the expenditure increased by 6.8% to CNY1.35 trillion.

According to Xinhua, the proposed defence budget aligns with China's defensive national defence policy and accounts for a “steady and moderate growth in military expenditures to safeguard its sovereignty, security, and development interests”.

Xinhua said China's military spending remains comparatively modest measured against key indicators such as its percentage of GDP, per capita defence expenditure, and funding allocated per military personnel.

The news agency added that Beijing has kept its defence spending below 1.5% of GDP during previous years, compared with several NATO members who achieved the 2% of GDP defence spending target in 2025.

In the government work report delivered at the Fourth Session of the 14th National People's Congress, Li Qiang, premier of Beijing's State Council, announced plans to enhance China's military training and combat readiness and accelerate development of advanced combat capabilities.

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