On March 12, 2025, China announced a 7.2% increase in its national defense budget for the year 2025. According to Xinhua News Agency, the country’s planned defense spending for this year will be 1.784665 trillion yuan (249 billion dollars). The proposed defense budget was revealed in the draft budget report released at the opening of the third session of the 14th National People’s Congress (NPC), which is China’s top legislative body.[1]
With this decision, China has emphasized its commitment to regional and global security dynamics. The increase in China’s defense budget not only reflects the ongoing competition with the influence of the United States (US) and Western powers in the region but also demonstrates how the military modernization efforts driven by advancing technology are reinforcing the multipolar world order. In this way, China aims to adopt a more independent stance against the West and encourages other countries to take similar steps.
Experts have cited China’s economic development, the need for national defense modernization, and the challenging security environment as factors contributing to the reasonable and moderate increase in the country’s defense spending. Security expert Fu Qianshao told the Global Times that China’s economic growth provides the foundation for the country’s steadily increasing defense budget. Thanks to its stable economic development and Gross Domestic Product (GDP) growth, China’s defense budgets have shown steady and moderate increases over the past decade. He emphasized that a strong national defense, in parallel with China’s economic growth, would safeguard the benefits of the country’s development.[2]
China’s investments in its defense budget are significant not only in the military sphere but also in economic and political domains. These investments strengthen the domestic defense industry, enhance economic and technological independence, and enable China to better withstand additional tariffs or sanctions imposed by the West in foreign policy.
Since the 1990s, China has been increasing its investments in its defense budget. What initially started as efforts to strengthen the military has evolved into a new dimension due to geopolitical competition and technological advancements. As China has developed, it has gained power, and as it has gained power, its influence in the Asia-Pacific region has expanded. The US, viewing China as a rival, has responded by increasing its engagement with regional countries, pursuing a balancing strategy against China’s rising power. Additionally, issues concerning Taiwan and the South China Sea have been among the key factors driving the rise in China’s military spending. Today, China has bolstered its military strength on a global scale by integrating technological advancements.
Security expert Song Zhongping has emphasized that China follows a fundamentally defensive military policy and that advancements in its military capabilities should not be perceived as a threat but as measures aimed at ensuring security and protecting national interests. He also highlighted that China plays a positive role in maintaining regional and global peace and stability, which justifies the need for an increased defense budget.[3]
Furthermore, China’s defense investments will enhance confidence and support for projects under the Belt and Road Initiative (BRI), thereby increasing its global impact. By securing strategically important ports for maritime trade and deterring moves by regional countries cooperating with the US and Western powers against the BRI, China’s growing military and economic influence will serve as a tangible demonstration of its global power. From a domestic perspective, the increase in the defense budget has bolstered public confidence and reinforced stability, while in foreign policy, it has contributed to China’s ability to take more balanced and independent steps in global competition with the US.
In conclusion, China’s investments in its defense budget will allow it to gain greater influence in both domestic and foreign policy. On a regional and global scale, China’s alliances with Asia-Pacific countries will strengthen, positioning it as a counterbalance to Western powers and playing a crucial role in shaping global power dynamics. As Xi Jinping has stated, military development is at the core of China’s global objectives. The increase in the defense budget is not only a matter of security but also a key element of China’s geopolitical strategy. With China’s growing defense investments, global power dynamics in the Asia-Pacific region will undergo significant changes. Given this, actors such as the US, India, and Japan are likely to take strategic measures against China, leading to an escalating rivalry in which China continues to strengthen its position.
[1] “China plans 7.2% defense budget rise, marking 10th consecutive year of single digit growth”, Global Times, https://www.globaltimes.cn/page/202503/1329511.shtml, (Access Date: 07.03.2025).
[2] Ibid.
[3] Ibid.
