China to reportedly boost defense spending by 7%, slowest pace since 2021

That would mark the slowest increase in its annual military expenditure since 2021.

The proposal comes as conflict in the Middle East has escalated, amid a broader rise in geopolitical tensions.

For the last three years, China has budgeted a 7.2% annual increase in defense spending. Beijing had increased spending by 7.1% in 2022 and 6.8% in 2021, according to official data.

China will support the faster development of advanced combat capabilities, Reuters said, as well as the “high-quality” modernization of its national defense and armed forces.

Some of Beijing’s latest weapon systems, including long-range missiles, were displayed during a military parade in September.

China is set to kick off its 8-day National People’s Congress on Thursday, an annual parliamentary meeting that officially approves the budget and development goals for the year.

Last year, China proposed a national defense budget of 1.78 trillion yuan ($244.99 billion at the time).

Beijing accounted for nearly 44% of Asia’s defense spending in 2025, up from 39% in 2017, according to the International Institute for Strategic Studies.

China is also second to the U.S. in terms of military spending.

The U.S. budgeted $849.77 billion for defense during the 2025 fiscal year. But estimates from non-profit USAFacts indicate the U.S. ended up spending about $919.2 billion during that time, up 2% from the prior year and accounting for 13% of the federal budget.