China to ramp up military spending by 7.2%, eclipsing rate of economic growth

Ryan King

March 05, 05:07 PM March 05, 05:07 PM

China is planning to surge its defense budget by 7.2%, a higher rate of expansion than its "around 5%" economic growth objective for 2023.

In its national budget unveiled Sunday, China allocated 1.55 trillion yuan ($224 billion) to its military, as geopolitical tensions with the west over the status of Taiwan and the South China Sea loom, the reported. For comparison, the U.S. has authorized roughly $858 billion for the fiscal year of 2023.

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“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,” Premier Li Keqiang said, per the report.

China's bolstered military budget marks the second year in a row where its hike eclipses 7%, having been expanded 7.1% last year. Officials in Beijing have sought to narrow the gap with the U.S., which still spends almost four times as much on its defense. Beijing has control over the largest navy in the world by size.

No breakdown of how the military spending will be allocated was provided. China's economy has sputtered over recent months amid its string of COVID-19 suppression measures and an apparent bubble in its financial system.

Since relaxing its pandemic rules, Beijing has been optimistic it can get its economy humming again.

Last year, China's gross domestic product grew by a meager 3%, below the official "around 5.5%" target.

Both the economic growth projection and defense budget figures were released for the annual gathering of the National People’s Congress. Chinese President Xi Jinping, who clinched a third term last year, is slated to formally enter that third term during the congress, CNN reported.