China to boost defense spending by 7%, slowest pace since 2021

China’s liquid-fueled intercontinental strategic nuclear missiles DongFeng-5C with global strike range pass through Tian’anmen Square during the V-Day military parade in Beijing, China, September 3, 2025.
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BEIJING — China plans to increase defense spending by 7% this year, according to the budget plan released by the Ministry of Finance on Thursday; This is the slowest increase in annual military spending since 2021.
The offer comes at a time when tensions over Taiwan continue in an environment where conflicts in the Middle East are escalating and global geopolitical fault lines are widening.
China has budgeted an annual increase of 7.2 percent in defense expenditures for the last three years. According to official data, Beijing increased its spending by 7.1% in 2022 and 6.8% in 2021.
Beijing will accelerate the development of advanced combat capabilities and pursue “high-quality” modernization of its national defense and armed forces, according to a government work report published on Thursday.
The study report also emphasized China’s first domestically built aircraft carrier, Fujian, which will enter service in November 2025. Some of China’s newest weapons systems, including long-range missiles, were displayed at a military parade in September.
Beijing also said it would resolutely fight against separatist forces aiming for “Taiwan independence” and oppose foreign intervention.
China is preparing to launch its 8-day National People’s Congress on Thursday, the annual parliamentary meeting that formally approves the year’s budget and development goals.
Last year, China proposed a national defense budget of 1.78 trillion yuan ($244.99 billion at the time). However, analysts believe that the official figures are exaggerated and important “off-budget” items are not included.
According to the 2025 report of the US Department of Defense report to Congress Beijing will spend $304 billion to $377 billion on defense for China’s military in 2024; That’s about 32% to 63% higher than its officially announced budget of $231 billion.
Beijing held accountable About 44% of Asia’s defense spending According to the International Institute for Strategic Studies, the rate increased from 39% in 2017 to 2025.
China also ranks second after the United States in terms of military spending.
USA allocated a budget $849.77 billion For defense through fiscal year 2025. But estimates from the nonprofit USAFacts show that the United States spent about $919.2 billion during that time. 2% increase compared to the previous year and accounts for 13% of the federal budget.




