Wed Mar 05 16:08:24 UTC 2025: ## China Announces 7.2% Increase in Defence Budget Amidst Rising Tensions

**Taipei, March 5, 2025** – China announced a 7.2% increase in its defense budget for 2025, totaling approximately $245 billion. This increase, while matching last year’s percentage, follows years of double-digit growth and reflects a broader economic slowdown. The announcement was made at the National People’s Congress, China’s annual legislative meeting.

The substantial budget increase fuels concerns about China’s growing military might and its assertive territorial claims in the South China Sea and towards Taiwan. The expansion focuses on high-tech military technologies including stealth fighters, aircraft carriers, and nuclear weapons. While China claims the spending is for exercises, maintenance, and improving the lives of its 2 million service members, experts suggest the actual figure could be significantly higher, potentially exceeding $343 billion, due to undisclosed military spending under other budget categories.

Tensions with the U.S., Taiwan, Japan, and other nations with competing claims in the South China Sea are driving the increased investment. China’s recent deployment of military aircraft and ships near Taiwan underscores these escalating tensions. Despite Premier Li Qiang’s statement at the Congress advocating for a peaceful solution to the Taiwan issue, he also expressed firm opposition to Taiwanese independence and foreign support for it.

Taiwan, in response, plans to increase its own military spending, citing the rapidly evolving international situation and growing threats. Analysts predict that China, faced with slower economic growth, will prioritize strategic goals such as military modernization and technological advancement over social and economic reforms.

While China’s state media portrayed the defense budget as a contribution to global peace and denied any expansionist ambitions, the U.S. Defense Department has previously highlighted China’s growing military capabilities and its intent to project power beyond its immediate region. China’s President Xi Jinping’s recent military reforms, including the removal of several senior military leaders, have yet to significantly alter the armed forces’ influence.

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