China increased its defence spending for the eighth straight year on Sunday. Thus, increasing it by 7.2% to 1.55 trillion yuan (about USD 225 billion), a little rise over the previous year.
China estimated its defence spending at 1.45 trillion yuan in 2017, an increase of 7.1%. This year, China will spend 1.55 trillion yuan on defence.
However, the state-run China Daily said that this year’s defence spending in China came to roughly USD 225 billion. It is mainly due to the strengthening of the currency versus the yuan.
In terms of dollars, China spent 230 billion last year on defence. China has announced a single-digit percentage point rise in its military budget for the seventh year in a row.
China Defence focusing on battle readiness?
Military operations, capacity building, and combat preparedness must all be “well-coordinated in accomplishing significant duties.” According to Premier Li Keqiang, who urged the armed forces to increase their battle readiness. The aims for the People’s Liberation Army’s century in 2027 must be pursued. He added in his state-of-the-nation address to the largely rubber-stamp legislature.
The United States and China’s neighbours will be closely monitoring the defence budget. Mainly because worries about Beijing’s military expansion and geopolitical objectives deepen, particularly as tensions over Taiwan soar. China claims that its low percentage of GDP military spending is for defensive objectives.
The second-largest economy in the world is experiencing domestic headwinds, which are outpacing the anticipated economic growth of about 5%. It is somewhat below the objective for last year. The anticipated U.S. spending on defence in 2023 is roughly equal to the reported Chinese budget, though many diplomats and international analysts think Beijing understates the true amount. The fiscal 2023 U.S. defence budget authorizes $858 billion in military expenditures, which covers support for Taiwan and Ukraine, which is defending itself against a Russian invasion, as well as financing for the acquisition of weapons, ships, and planes.
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