China says it will increase its defense budget 7.2% this year as it continues its campaign to build a larger, more modern military to assert its territorial claims and challenge the U.S. defense lead in Asia.

Summary

China announced a 7.2% increase in its defense budget at the National People’s Congress, maintaining the same percentage growth as last year.

Despite reflecting an economic slowdown, China remains the second-largest military spender globally, with actual defense spending potentially 40% higher than official figures.

The budget supports China’s military expansion, particularly in the South China Sea and concerning Taiwan, which Beijing claims as its territory.

Premier Li Qiang firmly opposes Taiwan’s independence.