China Increases Defense Budget by 7.2% Amid Rising Regional Tensions

China has announced a 7.2% increase in its defense budget for 2025, maintaining its push for military modernization and reinforcing its regional influence. The $245 billion budget, revealed during the National People’s Congress (NPC), underscores Beijing’s ongoing commitment to expanding its military capabilities.

While the budget increase matches last year’s growth rate, it remains below the double-digit spikes seen in previous years, reflecting China’s economic slowdown. However, defense analysts suggest actual military spending could be at least 40% higher than officially reported due to expenditures categorized under other budgetary allocations.

Military Expansion & Strategic Objectives

China’s People’s Liberation Army (PLA), which is controlled by the Chinese Communist Party (CCP), continues to focus on:

• Strengthening naval power, with three aircraft carriers operational and a fourth in development.
• Expanding its nuclear arsenal to bolster deterrence.
• Developing next-generation stealth fighters and advanced missile systems.
• Enhancing military presence in the South China Sea by fortifying bases on artificial islands.

Taiwan at the Center of Defense Strategy

A major driver of China’s military build-up remains its goal of asserting control over Taiwan, a self-governing democracy that Beijing considers a breakaway province.

On Wednesday, China conducted another military incursion near Taiwan, deploying five aircraft and seven naval vessels—a relatively small force compared to previous operations but still part of its ongoing psychological and military pressure campaign. These repeated maneuvers aim to wear down Taiwan’s defenses, which have been reinforced with upgraded U.S. F-16 jets, tanks, and missile systems.

Speaking at the NPC, Chinese Premier Li Qiang reiterated Beijing’s preference for a peaceful reunification with Taiwan but issued a stern warning:

“We resolutely oppose those pushing for Taiwan’s formal independence and their foreign supporters.”

Regional & Global Implications

China’s military expansion has raised concerns among neighboring countries and heightened tensions with the U.S., Japan, and Southeast Asian nations over territorial disputes in the South China Sea.

Taiwan has also announced plans to increase defense spending in response to “escalating threats” from Beijing. Meanwhile, Western allies continue to support Taiwan, with Washington supplying advanced weaponry and reinforcing its commitment to regional stability.

China’s Military Priorities Amid Economic Slowdown

With China’s economy facing slower growth, experts predict the CCP will prioritize military expansion over social and economic reforms. According to Antonia Hmaidi, a senior analyst at the Mercator Institute for China Studies:

“Resources will be directed toward China’s techno-industrial agenda and military modernization, as these align with the CCP’s long-term strategic goals.”

Additionally, President Xi Jinping has been restructuring China’s military leadership, recently removing senior defense officials, including two former defense ministers and the head of the missile corps, in a broader effort to consolidate control and eliminate corruption.