China raises its 2026 defense budget by 7% to about 1.909 trillion yuan

In short: China says it will increase its 2026 defense budget by 7% to about 1.909 trillion yuan, or roughly $275 to $277 billion.

What happened

China announced the new defense budget on March 5, 2026, at the opening of the National People's Congress, the country’s annual major political meeting. The number appeared in the government’s draft budget report presented by Premier Li Qiang.

The 7% rise is slightly smaller than last year’s 7.2% increase. It still continues a long pattern of steady growth in military spending under President Xi Jinping, who has set a goal of modernizing the armed forces by 2035.

Officials said the money will support major defense projects and day to day readiness, including training. It will also fund capabilities like missiles, ships, submarines, surveillance, and “cyberwarfare” (military activity carried out through computers and networks, like attacking or defending digital systems). Reports also link this to increased activity around Taiwan and the South China Sea.

The increase is larger than China’s expected economic growth, which is projected at about 4.5% to 5%. The International Institute for Strategic Studies estimates China accounts for close to 44% of all military spending in Asia.

China’s military has also been hit by high-level anti-corruption investigations, including scrutiny of senior officers. Analysts cited in coverage said this may tighten oversight, but it is not expected to stop modernization.

Why it matters

For people outside China, this affects regional security and global trade routes. It can also shape technology competition, since the report describes a five-year plan aimed at reducing reliance on Western technology.

Source: NYTimes