As part of the strengthening and expansion of its Armed Forces’ capabilities, the People’s Republic of China has announced a new increase in its defense budget, reaching 7.2% for the year 2025. According to data revealed during the third session of the 14th National People’s Congress (NPC), this decision entails an allocation of funds amounting to $249 billion, thereby maintaining the goal of single-digit growth for a decade. “Peace must be safeguarded with strength,” stated Lou Qinjian, spokesperson for the NPC session.
With this new increase, China marks the third consecutive year of rising defense budgets, which in 2024 reached $234.5 billion, a 7.2% increase compared to 2023. Nevertheless, the defense expenditure of the People’s Republic of China continues to represent approximately 1.3% of its GDP, while publicly available data indicates that this figure stands at about 3.5% for the United States, and the guideline for NATO members is around 2%. Meanwhile, the United States has approved a military budget of $895 billion for the current year.
Given the region’s growing conflicts and territorial disputes, along with the Chinese People’s Liberation Army Navy’s (PLAN) ambition to expand its reach globally, Beijing’s budget increase appears justified. This expansion is reflected in modernization efforts, research and development of new systems and platforms, and the strengthening of its defense industry, which has achieved significant milestones over the past year.
One example is the unveiling and sea trials of the PLAN’s third aircraft carrier, the Fujian (CV-18), which is equipped with a modern electromagnetic catapult system similar to those found on its U.S. counterparts. Additionally, at the end of last year, China launched the Sichuan, the world’s first amphibious assault ship equipped with electromagnetic catapults. In the aviation sector, the J-35A stealth fighter made its debut at Airshow China 2024.
Experts predict that this year, the Fujian will enter service, the Sichuan will begin its sea trials, and the J-35A will commence the production of its first pre-series units. However, beyond these advancements, the People’s Liberation Army (PLA) has an ongoing need to conduct routine exercises to maintain troop readiness and combat capabilities, which translates into necessary budget allocations. Last year, China carried out unprecedented large-scale deployments, such as Joint Sword 2024A and Joint Sword 2024B, two exercises around Taiwan featuring both aerial and naval assets. Additionally, China and Russia conducted joint air patrols in Arctic regions.
As analyzed in multiple reports by Zona Militar, the Indo-Pacific region remains a focal point of geopolitical tensions. China continues to assert sovereignty claims over Taiwan and the Philippines, leading to exercises and maneuvers aimed at demonstrating the capabilities of its armed forces. In the South China Sea, the Philippines has escalated actions concerning islands and reefs claimed by China, including the deployment of the U.S.-made Typhon missile system in the region. Meanwhile, in the Taiwan Strait, the island has deepened its cooperation with the United States, as reflected in the growing sale of U.S. military equipment.
Furthermore, the increase in China’s defense budget also enables participation in UN peacekeeping missions, freedom of navigation operations, disaster relief, and humanitarian assistance efforts. However, above all, analysts foresee accelerated technological advancements in weaponry and equipment, allowing mass production to ensure the PLA maintains its operational capability and defends national interests.
Lastly, Zhang Junshe, a military analyst, emphasized that China’s strategy balances security needs with economic development. In an international context marked by rising tensions, he stressed the importance of strengthening military capabilities to deter what China perceives as threats and to guarantee regional stability.
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