China has announced a 7.2% increase in its defence budget for 2025, amounting to approximately $245 billion.
Beijing aims to bolster its military capabilities amidst rising geopolitical tensions, particularly with Taiwan and the U.S. The increase maintains the same growth rate as the previous two years.
China’s economic growth target for 2025 is set at about 5%, which is notably lower than the defence spending increase. This highlights Beijing’s prioritisation of military modernisation over economic recovery, a trend that has been consistent since Xi Jinping took office over a decade ago.
The defence budget now stands at 1.78 trillion yuan, making China the second-largest military spender globally, after the U.S., which has allocated more than $850 billion for its military in 2025.
The defence budget increase is particularly relevant in the context of China’s regional ambitions. Beijing continues to expand its military presence in the South China Sea and has been involved in tensions with Taiwan. The strategic build-up aims to challenge U.S. military dominance in Asia. Additionally, China’s military modernisation includes advancements in stealth technology, aircraft carriers, and advanced missile systems, further widening the gap with its regional competitors.
Western nations, including the U.S. and European countries, are also boosting their military capabilities. The European Union has announced plans to mobilise significant funds to support Ukraine amid ongoing conflicts with Russia.
In addition to defence spending, China has also increased public security expenditures by 7.3% this year, marking a notable rise compared to the previous year’s 1.4% increase.
In the context of these developments, Lou Qinjian, spokesperson for the National People’s Congress, emphasised that “peace needs to be safeguarded with strength.”