China plans 7.2% increase in annual defense budget

Mar 05, 2023 08:54 UTC

China has announced a 7.2 percent increase in its defense budget for 2023, slightly outpacing last year's increase and faster than the government's modest economic growth forecast, as Premier Li Keqiang warned “external attempts to suppress and contain China are escalating.”

Military expenditure is expected to rise to 1.55 trillion Yuan ($224 billion) in the coming year, according to China’s Ministry of Finance's annual report released Sunday morning at the start of the National People's Congress (NPC) in Beijing.

According to Press TV, in his report to delegates of NPC, Li stressed that military operations, capacity building, and combat preparedness should be “well-coordinated in fulfilling major tasks.”

“Our Armed Forces, with a focus on the goals for the centenary of the People’s Liberation Army in 2027, should work to carry out military operations, boost combat preparedness and enhance military capabilities,” he said.

The increase in the defense budget, slightly from last year’s 7.1 percent rate of increase, marks the eighth consecutive year of single-digit percentage point increases in what is now the world’s second-largest military budget.

In congress, a GDP growth target of “around 5 percent” was announced for 2023, one of the lowest in decades. Last year, China posted just three percent growth, missing its stated target of around 5.5 percent by a wide margin as the economy was strained under the impact of strict Covid-19 outbreaks and restrictions.

“Chinese leaders are clearly intensifying efforts to prepare the country militarily to meet all potential security challenges, including unexpected situations,” Li Mingjiang, a professor of International Studies said, referring to the greater pressure on China’s external security environment, especially from the United States.

China's reported defense budget in 2023 is around one-quarter of proposed US spending as the fiscal 2023 US defense budget authorizes $800 billion in military spending and includes funding for purchases of weapons, ships, and aircraft, and support for Taiwan and Ukraine.

China has long argued that it needs to close the gap with the US. Beijing owns the world's largest standing army and navy and recently launched its third aircraft carrier.