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flag China increases 2026 defense budget by 7% amid modernization and geopolitical tensions.

flag China has raised its 2026 defense budget by 7%, slightly below recent averages, amid global instability and shifting geopolitics. flag The increase, announced at the 14th National People's Congress, reflects steady military spending focused on combat readiness and modernization, including the 15th Five-Year Plan. flag The Central Military Commission has been restructured under President Xi Jinping’s anti-corruption campaign, reducing its size and consolidating power. flag While the official budget of 1.9 trillion yuan is considered modest relative to GDP and per capita spending, experts believe actual defense outlays are higher due to excluded R&D, capital projects, and internal security costs. flag China remains the top military spender in Asia, accounting for nearly 44% of regional defense budgets, significantly outpacing Japan and Taiwan.

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