China hikes defence budget by 10 per cent to USD 275 billion

Last year China announced a 7.2 per cent increase for its national defence budget to USD 249 billion for 2025 which is a USD 17 billion rise compared to 2024.

China’s defence spending, only second to that of the US, has been growing over the years putting enormous pressure on India and other neighbouring countries to scale up their defence budgets in the face of economic challenges.

In 2024, China increased its defence budget by 7.2 per cent to about USD 232 billion (1.67 trillion yuan) — over three times that of India — as it continues with the massive modernisation of all its armed forces.

China’s defence budget figures are viewed with scepticism in the light of massive military modernisation, including building aircraft carriers, rapid construction of advanced naval ships and modern stealth aircraft being carried out at a feverish pitch by the Chinese military.

Meanwhile, China on Thursday lowered its GDP target to 4.5 to 5 per cent for this year in the face of Trump’s trade tariff war, the worsening global crisis following the US-Iran war and headwinds in the domestic economy, owing to property market slump and unemployment crisis.

China has been setting a five per cent target for the GDP for the last three years amid growing domestic economic challenges. This year, the target is lowered to 4.5 per cent to 5 for the first time.