China Defense Spending to Increase by 7% in 2026, Slowest Growth Since 2021
China plans a 7% increase in defense spending for 2026, amounting to approximately 1.91 trillion yuan ($277 billion), the slowest growth since 2021. Premier Li Qiang emphasized improvements in military readiness and advanced capabilities. The slower budget growth aligns with China's lowest annual growth target in over 30 years, amidst rising geopolitical tensions. Analysts suggest the actual military spending may be higher than reported figures. The US continues to lead in defense spending, with significant increases proposed for its military budget.

China's defense budget is set to grow by 7% in 2026, reaching about 1.91 trillion yuan ($277 billion), marking the slowest increase since 2021. This follows annual growth rates of 7.2% from 2023 to 2025.
Premier Li Qiang stated efforts will focus on enhancing military training and advanced combat capabilities. The budget growth coincides with China's lowest GDP target in over three decades and comes amid rising global geopolitical tensions.
Analysts assert actual defense spending may exceed official figures, with a US Department of Defense report estimating China’s actual spending could range from $304 billion to $377 billion. The US allocated $849.77 billion for defense in fiscal year 2025.




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