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American Focus > Blog > Economy > China to raise defense spending by 7.2% in 2025
Economy

China to raise defense spending by 7.2% in 2025

Last updated: March 5, 2025 5:38 am
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China to raise defense spending by 7.2% in 2025
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China’s navy made a strong statement at the 2024 Zhuhai Air Show by showcasing its J-15T fighter jet, demonstrating the country’s commitment to advancing its military capabilities. This display comes in the wake of China’s decision to increase its defense spending by 7.2% for the 2025 fiscal year, maintaining the same growth rate as the previous two years.

In an official government report set to be released in parliament, China has proposed a national defense budget of 1.78 trillion yuan ($244.99 billion) for the upcoming year. This significant increase in defense expenditure, exceeding China’s economic growth target of approximately 5%, reflects Beijing’s determination to “firmly safeguard” its national security in a time of heightened global tensions.

The decision to boost defense spending comes as Western governments, including the United States and the European Union, are also increasing military budgets in response to security threats. The EU recently announced plans to allocate up to 800 billion euros ($841 billion) to support Ukraine in the face of Russia’s invasion, while the U.S. has paused military aid to the embattled nation.

China’s defense budget saw a 7.2% increase to 1.67 trillion yuan in the previous year, following the same growth rate from the year before. In 2022 and 2021, Beijing raised defense spending by 7.1% and 6.8%, respectively, according to official data.

Speaking about China’s defense spending, Lou Qinjian, spokesperson for the 14th National People’s Congress, emphasized the importance of strength in maintaining peace. He highlighted that China’s defense expenditure as a percentage of GDP has remained below 1.5% for many years, lower than the global average.

See also  Trump raises China tariffs by 100% and threatens to scrap Xi meeting over export rules

Despite the increase in defense spending, China still ranks as the world’s second largest military spender, trailing behind the United States, which has allocated $850 billion for its military budget in 2025.

Additionally, the Chinese government has raised expenditures earmarked for public security by 7.3% for the current year, a significant jump from the 1.4% increase seen in the previous year.

In conclusion, China’s decision to increase defense spending reflects its commitment to strengthening national security amid escalating global challenges. The country’s strategic investments in military capabilities and public security underscore its resolve to safeguard peace and stability in the region.

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