China will increase its defence budget to $249 billion in 2025, but this is not even 2% of GDP

China continues to increase its defence budget by 7.2% annually, and in 2025, its military spending will amount to 1.78 trillion yuan (about $249 billion). The announcement was made during the 14th National People's Congress.

Here's What We Know

This is part of Xi Jinping's strategy to strengthen the Chinese armed forces on a large scale by 2027, the 100th anniversary of the founding of the People's Liberation Army of China. Growth of 7.2% continues for the third year in a row

China currently ranks second in the world in terms of defence spending, but is far behind the United States, which is expected to spend $968 billion on defence in 2024. Russia is in third place with military spending of about $146 billion.

The country attributes the budget increase to increased military exercises, maintenance, and improving the lives of 2 million military personnel. However, a more realistic reason is the development of the navy, strategic forces and army due to the deterioration of relations between the US, Australia and neighbouring countries.

In recent years, China has been building up its military presence in the South China Sea, reinforcing its territorial claims to most of the waters, which are not recognised by other countries.

At the same time, Beijing spends only 1.5-1.7% of GDP on defence, which is significantly less than the US' 3.5%. This allows China to increase its military spending without putting a significant burden on the economy.

In addition to the total amount of expenditures, their distribution is important. China is actively renewing its armed forces in all areas - from armoured vehicles and aviation to the navy and nuclear arsenal, which indicates a targeted modernisation of military power.

Source: Associated Press