By AFP and Focus | 2025-03-06

BEIJING -- China's defense spending will rise by 7.2% in 2025, the same as last year, Beijing said on March 4, as its armed forces undergo rapid modernization and eye deepening strategic competition with the United States.

The country's expenditure on its armed forces has been on the rise for decades, broadly in line with economic growth.

China has the world's second-largest military budget but lags well behind the United States, its primary strategic rival.

However, the People's Liberation Army (PLA) surpasses the US military by number of personnel.

The budget hike comes as thousands of delegates congregated March 5 in Beijing for the opening session of the National People's Congress, the second of China's "Two Sessions" meetings this week.

When asked about China's defense spending, Lou Qinjian, spokesperson for the third session of the 14th National People's Congress, said at a news conference that "peace needs to be safeguarded with strength."

Beijing's 1.78-trillion CNY ($245.7 billion) defense budget for this year is still less than a third of Washington's. Its military spending last year made up 1.6% of its GDP, far less than the percentage in the United States or Russia, according to the Stockholm International Peace Research Institute.

But its defense expansion is viewed with suspicion by Washington, as well as by other powers in the region including Japan, with which Beijing has a territorial dispute over islands in the East China Sea.

China has increasingly flexed its muscles in the South China Sea, which it claims almost entirely in defiance of an international arbitration ruling that declared its stance baseless.

Beijing's spending boost is a cause for concern for self-ruled Taiwan, which Beijing says is part of its territory to be claimed by force if necessary.

'Growing uncertainties'

China describes its military stance as "defensive" and aimed at preserving its sovereignty.

But its territorial claims over areas controlled by other governments have raised fears of a regional clash.

Speaking at the March 5 session, Premier Li Qiang vowed that China would "resolutely oppose separatist activities aimed at Taiwan independence and external interference, so as to promote the peaceful development of cross-Strait relations."

This month marks the 20th anniversary of China's Anti-Secession law, which gives Beijing the legal authority to use force on Taiwan if it secedes or if the "possibilities for a peaceful reunification should be completely exhausted."

Chin-Hao Huang, a political scientist at the National University of Singapore, told AFP the hike took place in the context of "growing uncertainties in China's external environment and domestic security priorities."

"The defense budget increase reflects the need to maintain and upgrade the PLA's military capabilities to keep pace and be ready for all contingencies," he said.

The announcement comes as Europeans are considering significantly increasing their military budgets.

"As the geopolitical tension between China and the US increases, China cannot slow down its military expenditures," said Niklas Swanstrom, director of the Sweden-based Institute for Security and Development Policy.

Meanwhile, the Chinese Ministry of Finance on March 4 proposed raising the "diplomatic endeavors" budget for 2025 by 8.4% to more than 64.5 billion CNY ($8.87 billion), up from a 6.6% increase last year.