China announced on Thursday a 7% increase in defense spending for 2026, the lowest rate in five years but still exceeding economic growth targets amid rising regional tensions. The move supports military modernization by 2035, with references to Taiwan. Premier Li Qiang highlighted improvements in combat readiness.
Premier Li Qiang of China stated at the opening of the parliament's annual meeting that defense spending will increase by 7% in 2026. This marks the lowest growth rate in five years, following three years of 7.2% rises and down from 6.8% in 2021. The broader GDP growth forecast stands at 4.5% to 5%, with defense outpacing it.
In his work report, Li said, "All these steps will boost our strategic capacity to safeguard China's sovereignty, security and development interests," adding that President Xi Jinping holds ultimate command responsibility. China aims to improve combat readiness and accelerate the development of "advanced combat capabilities."
The announcement comes amid a high-profile purge of upper military ranks. Zhang Youxia, a veteran military ally of Xi, was placed under investigation in January, while He Weidong was expelled in October last year. This leaves just two members of the usual seven on the supreme Central Military Commission, with Xi as chair and a newly promoted vice chairman, Zhang Shengmin.
The government remains committed to the ruling Communist Party's "absolute leadership over the armed forces," Li added. Regarding Taiwan, Li vowed to "resolutely fight against separatist forces aimed at 'Taiwan independence' and oppose external interference," promoting peaceful cross-Strait relations and national reunification. Taiwan's government had no immediate reaction.
In Tokyo, Japan's Chief Cabinet Secretary Minoru Kihara noted that China lacks sufficient transparency on its high defense spending and capabilities. Despite China's efforts to change the status quo in the East and South China Seas by force or coercion, Japan will continue building constructive, stable ties.
The International Institute for Strategic Studies (IISS) stated that growth in Chinese military spending consistently outpaces the rest of Asia, reaching almost 44% of Asia's total in 2025. China provides no breakdown of its 1.91 trillion yuan ($277 billion) budget, about a quarter of the U.S.'s $1-trillion defense bill signed in December.
