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flag China raises 2026 defense budget by 7% to $277 billion amid modernization and regional tensions.

flag China has announced a 7% increase in its 2026 defense budget to 1.91 trillion yuan ($277 billion), the slowest growth rate in five years but still above its projected economic growth of 4.5%-5%. flag The rise continues a steady trend since 2016 and supports military modernization, including advanced weapons, cyber capabilities, and regional readiness, particularly around Taiwan. flag Despite the official figure, analysts estimate actual spending may be 32% to 63% higher due to unaccounted research and paramilitary costs. flag The budget comes amid internal military reforms, including purges of top generals, and heightened regional tensions. flag China reiterated its opposition to "Taiwan independence" and external interference, while U.S. defense spending and surveillance efforts have increased in response.

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