New Delhi, Maar 5: China’s defence budget growth is expected to be around 7 per cent in 2026, according to a draft budget report submitted to the country’s national legislature for review, state news agency Xinhua News Agency reported on Thursday.
The report said China plans to allocate about 1.9 trillion yuan (around $275 billion) for national defence in 2026. If approved, it would mark the 11th consecutive year that China’s defence budget growth has remained in single digits. The growth rate stood at 7.2 per cent for 2023, 2024 and 2025.
China has made notable advances in defence modernisation over the past year. On September 3, 2025, the country held a major military parade marking the 80th anniversary of victory in the war against Japanese aggression, during which several new weapons systems were displayed. These included a new-generation tank design, hypersonic anti-ship missiles, air superiority drones and elements of China’s nuclear triad comprising air-, land- and sea-based strategic missiles.
China also commissioned its third aircraft carrier, the Fujian, on November 5, 2025. The warship is equipped with electromagnetic catapult technology and marks China’s entry into an era of operating three aircraft carriers.
Experts suggest that the global and regional security environment has also contributed to the rise in defence spending. Tensions in the South China Sea, US arms sales to Taiwan and Japan’s military expansion are claimed by Chinese officials as factors affecting regional security. Globally, defence spending is rising amid growing geopolitical tensions, according to a report released last month by the London-based think tank International Institute for Strategic Studies. The report noted that the United States continues to lead the world in defence expenditure. It said US defence spending could exceed $1 trillion in 2026 following the passage of a budget reconciliation bill.
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