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China records modest increase in defence spending from national budget

Helicopters attached to an army aviation brigade under the PLA 76th Group Army lift off for a flight training exercise in early February, 2023. Photo: Yang Mingfu.

The People’s Republic of China is reporting a modest increase in defence funding as the country allocates 1.55 trillion yuan (AU$332 billion) to military spending.

The People’s Republic of China is reporting a modest increase in defence funding as the country allocates 1.55 trillion yuan (AU$332 billion) to military spending.

The steady 7.2 per cent increase since last year was announced during China’s national budget release on 5 March.

The country is currently undergoing strengthening of war-preparedness training through a military development scheme as part of the 14th Five-Year Plan 2021–25.

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Chinese defence spokesperson Senior Colonel Tan Kefei, who represented the Chinese People’s Liberation Army and the People’s Armed Police Force at the 14th National People’s Congress, said the spending is defensive in nature and pursues peaceful development.

“The Chinese government upholds the guideline of coordinated development of national defence and economy, and appropriately determines the scale of defence spending in light of actual defence needs and national economic development level,” he said.

“China has kept its defence expenditure increasing moderately while maintaining the sustainable and sound economic and social development in recent years, so as to promote defence capabilities to grow in step with the nation’s economic strength.”

Defence funding will be put towards the development of modern logistics, weaponry, and equipment or translating of scientific and technological advances into combat capabilities.

Additionally, it can be used to expand military reform, improve military governance capabilities, and improve the working, training, and living conditions for military personnel.

“China also actively participates in the UN’s military expenditure transparency regime, and has been submitting annually its military expenditure report of the last fiscal year to the UN since 2008,” Senior Colonel Tan said.

Japanese minister of defence, Yasukazu Hamada said neighbouring countries such as Japan would like to see more transparency regarding China’s defence budget, during a press conference on March 7.

“China's defense budget has been increasing at a high rate for a long period of time,” he said.

“Such military trends in China have become a matter of serious concern for Japan and the international community, and the Ministry of Defence will continue to strive to collect and analyze the necessary information and take all possible measures for warning and surveillance.

“(Regarding China's public defence budget) details such as the breakdown of the budget have not been made public, and I understand that it is pointed out that it is only a part of the amount actually spent for military purposes.

“The Ministry of Defence will continue to use various opportunities to strongly encourage China to improve its transparency regarding its national defence policy and military affairs.”

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