China has announced a 7 percent increase in its 2026 defense budget to accelerate military modernization. The announcement came on March 5 during the opening of the annual parliamentary session, where Premier Li Qiang said the country would strengthen war preparedness and enhance advanced military capabilities. Although this is the smallest increase in five years, it remains higher than most Asian nations’ defense growth rates.

Li Qiang stated that the measures aim to boost China’s strategic capacity to safeguard sovereignty, security, and development interests. The modernization plan includes developing new missiles, warships, submarines, and surveillance technologies, with a goal to fully modernize the armed forces by 2035. Analysts noted that China’s defense spending typically aligns with GDP growth and inflation. Beijing has also intensified anti-corruption efforts within the military, investigating senior generals such as Zhang Youxia and He Weidong.

Taiwan expressed concern that China’s large defense allocation amid weak economic conditions poses a threat, while Japan criticized the lack of transparency. A report by the International Institute for Strategic Studies said China accounted for 44 percent of Asia’s total defense spending in 2025, up from an average of 37 percent between 2010 and 2020.