China Announces 7% Defense Spending Rise for 2026

China announced a 7 percent increase in its defense spending for 2026 on Thursday, allocating 1.91 trillion yuan, or about $277 billion, as part of efforts to modernize its armed forces amid regional tensions. The figure, unveiled by Premier Li Qiang during the opening session of the National People's Congress in Beijing, marks a slight decrease from the 7.2 percent rise approved for 2025 but exceeds the government's projected economic growth target of 4.5 to 5 percent.

The budget hike supports President Xi Jinping's goal to complete military modernization by 2035, focusing on advanced capabilities such as missiles, naval vessels, submarines and surveillance systems. Officials emphasized that the spending aligns with China's needs for enhanced combat readiness to protect national sovereignty and interests, including territorial claims over Taiwan and the South China Sea. Despite the increase, China's defense expenditure remains modest relative to its economy, accounting for about 1.7 percent of gross domestic product, compared to 3.4 percent in the United States.

Analysts described the growth as steady and proportional to China's expanding role in regional security. Song...