China’s liquid-fueled intercontinental strategic nuclear missile Dongfeng-5C, which has a global range, passes through Tiananmen Square during the V-Day military parade in Beijing, China, on September 3, 2025.
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BEIJING—China plans to increase defense spending by 7% this year, Reuters reported on Thursday, citing an official document scheduled to be released later that day.
This is the lowest annual increase in military spending since 2021.
The proposal comes amid widespread geopolitical tensions and an escalating conflict in the Middle East.
For the past three years, China has budgeted for an annual increase in defense spending of 7.2%. According to official data, the Chinese government increased spending by 7.1% in 2022 and 6.8% in 2021.
Reuters said China will support not only the “high-quality” modernization of its national defense and military, but also the faster development of advanced combat capabilities.
Some of Beijing’s latest weapons systems, including long-range missiles, were on display during a military parade in September.
China is scheduled to open an eight-day National People’s Congress on Thursday. The National People’s Congress is the annual parliamentary meeting that formally approves the year’s budget and development goals.
Last year, China proposed a defense budget of 1.78 trillion yuan ($244.99 billion at the time).
China will account for nearly 44% of Asia’s defense spending in 2025, up from 39% in 2017, according to the International Institute for Strategic Studies.
China also ranks second in military spending after the United States.
The United States budgeted $849.77 billion for defense spending in fiscal year 2025. But the U.S. ended up spending about $919.2 billion during that period, up 2% from a year earlier and accounting for 13% of the federal budget, according to estimates by the nonprofit group USAFacts.
