China to hike defence budget by 7% amid rising global security tensions

China will raise its defence budget for the year by 7 per cent, a slight dip from last year’s 7.2 per cent increase amid strategic rivalry with the United States, tensions in the Taiwan Strait and a widening conflict in the Middle East.



The pot will grow to US$276.9 billion, according to a draft budget report released on Thursday as Chinese Premier Li Qiang delivered the government work report at the opening session of the National People’s Congress (NPC).



It’s the lowest percentage increase in the national military budget since a 6.8 per cent hike in 2021.



China’s defence budget rose 7.1 per cent in 2022 and 7.2 per cent annually from 2023 to 2025.





Since 2016, China’s defence budget has grown at single-digit rates, generally exceeding the gross domestic product (GDP) growth target set for the same year.