By Liang Rui and Liu Xuanzun
Sailors man the rails during the commissioning and flag-presenting ceremony of the Fujian (Hull 18), China's first aircraft carrier equipped with electromagnetic catapults, in South China's Hainan province on November 5, 2025. Photo: China Military Online
China's defense budget growth is expected to slow to 7 percent in 2026, according to a draft report submitted to the national legislature for review on Thursday, the Xinhua News Agency reported.
It marks the 11th consecutive year of single-digit growth for China's defense budget. The figure stayed at 7.2 percent for 2023, 2024 and 2025, reported Xinhua.
According to the draft 2026 budget report, roughly 1.9 trillion yuan (about $275 billion) will be allocated to national defense.
China's defense spending remains comparatively modest across key relative indicators, including its share of GDP, per capita defense expenditure, and defense expenditure per military personnel, Xinhua said.
Chinese military affairs experts reached by the Global Times said the defense budget increase is reasonable, moderate, and stable, considering national strength, economic growth, defense needs, and the external security environment.
Song Zhongping, a military affairs expert, told the Global Times that as the economy develops, a part of the defense budget could be allocated to personnel expenses, which include improving the benefits and conditions for officers and soldiers. This requires increased funding for daily operations and personnel support to account for factors such as inflation.
Another important aspect is training funds, which cover routine training and the maintenance of equipment. This necessitates substantial financial support, Song said, noting that as China's national defense capabilities continue to strengthen, the upgrading of weaponry and equipment also particularly requires basic funding support.
Over the past year, China has achieved significant progress in its defense modernization.
On September 3, 2025, China held a grand V-Day military parade to mark the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, with many advanced weapons and equipment making their debut, including China's new-generation tank with a whole new design concept, several types of hypersonic anti-ship missiles, air superiority drones, as well as the country's nuclear triad, which includes air-launched, submarine-launched and land-based strategic missiles.
The country's third aircraft carrier, the Fujian, equipped with electromagnetic catapults, was officially commissioned on November 5, 2025, marking China's official entry into an era with three aircraft carriers.
Wang Yunfei, another Chinese military affairs expert, told the Global Times that the more advanced modern weaponry and equipment become, the higher the level of sophisticated technologies they contain, which in turn leads to increased expenditures on research, production, and maintenance. Therefore, a sustained and stable growth in defense spending is a necessary requirement for maintaining the production level and quality improvement of China's weaponry and equipment.
Changes in the complex security environment facing China are another important factor of the increase in defense spending, Wang said.
Over the past year, the US has condoned certain regional countries' efforts to continuously worsen the situation in the South China Sea, and its arms sales to the Taiwan region have exacerbated instability across the Taiwan Straits. Revival of Japan's right-wing militarism has further deteriorated the security environment in the region, Wang pointed out.
From a global point of view, the world is not peaceful, as seen in the Russia-Ukraine conflict, the Israel-Palestine conflict, and in cases such as Venezuela and Iran. China needs to increase investment to safeguard national security, while also serving as a cornerstone for global and regional peace and stability, Wang said.
The International Institute for Strategic Studies (IISS), a UK-based think tank, released a report on February 24 indicating that global defense spending continues to grow amid geopolitical uncertainty.
The IISS report showed that the US continues to lead the world in defense spending in 2025.
The enactment of the budget reconciliation bill will bolster US defense spending in 2026 to over one trillion dollars and contribute to global defense spending growth this year, said Bastian Giegerich, Director-General and Chief Executive of the IISS on February 24.
The US side even further claimed the 2027 US military budget should be $1.5 trillion, significantly higher than the $901 billion approved by Congress for 2026, reported the Reuters on January 8.
By contrast, China's sustained and stable growth in defense spending reflects the responsibility expected of a major country, demonstrating its determination and commitment to maintaining peace and stability in both the surrounding region and the broader international environment, Wang said.
At the same time, China has been steadily increasing its support for international non-war military operations. This includes deploying hospital ships including the Peace Ark to contribute to global health affairs and actively participating in UN peacekeeping missions, Wang noted.
Since the founding of the People's Republic of China in 1949, it has pursued a path of peaceful development and a national defense policy that is defensive in nature, and firmly opposed all forms of hegemony, aggression, expansion, and arms race. China determines its defense expenditure at a reasonable level in accordance with the policy of coordinating development in national defense and economic growth, according to a white paper titled "China's Arms Control, Disarmament, and Nonproliferation in the New Era" released by China's State Council Information Office in November 2025.