China increases military spending in face of 'escalating' threats, unveils $225 billion budget
3 min read . Updated: 05 Mar 2023, 10:58 AM IST
Premium- This year's hike in defence spending marks the eighth consecutive single-digit increase. As in previous years, no breakdown of the spending was given, only the overall amount and the rate of increase
China announced Sunday an increase in its military spending while warning of "escalating" threats from abroad, at a meeting of its rubber-stamp parliament that is set to hand Xi Jinping a third term as president.
The increase in the world's second-largest defence budget came as China's leaders said it would aim for economic growth of around five percent for the coming year -- one of its lowest in decades.
As the country unveiled the 1.55 trillion yuan ($225 billion) budget, outgoing Premier Li Keqiang told delegates to the National People's Congress (NPC) that "external attempts to suppress and contain China are escalating".
"The armed forces should intensify military training and preparedness across the board," he said.
The military, he added, must "devote greater energy to training under combat conditions, and... strengthen military work in all directions and domains".
The defence budget will be closely watched by China's neighbours and the United States, who are concerned by Beijing's strategic intentions and development of its military, especially as tensions have spiked in recent years over Taiwan.
In his work report to the annual session of parliament, Li said 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 in the state-of-the-nation address to the largely rubber-stamp legislature.
This year's hike in defence spending marks the eighth consecutive single-digit increase. As in previous years, no breakdown of the spending was given, only the overall amount and the rate of increase.
The spending increase outpaces targeted economic growth of around 5%, which is slightly below last year's target as the world's second-largest economy faces domestic headwinds.
China last year pegged its defence budget at 1.45 trillion yuan, a 7.1 per cent increase. This year the defence spending is increased to 1.55 trillion yuan.
However, in view of the appreciation of the dollar against the yuan, this year’s defence spending of China totalled about USD 224 billion compared to last year’s USD 230 billion.
This is the eighth consecutive year that China has announced a single-digit percentage point increase in its military budget.
In his work report presented to the opening session of the National People’s Congress (NPC) - the country's rubber-stamp parliament - outgoing Premier Li Keqiang called for the armed forces to boost combat preparedness.
China's defence spending still pales in comparison with the United States, which has allotted over $800 billion for its military this year, but analysts have said much more money is spent than the officially announced sums.
* *With agency inputs