China’s Ministry of Finance revealed a 7.2% increase in military funding for 2024, expanding the defense budget to 1.67 trillion yuan. This move corresponds with China’s GDP growth and dedication to meeting its national defense needs.
The funds are expected to be used primarily to advance new equipment and technology and improve training conditions for military staff. Despite international worries regarding China’s escalating military power, the Ministry maintains that this budget enhancement aligns with global trends.
The defense budget in China has steadily grown year-on-year
The defense budget in China has steadily grown year-on-year: from a 7.5% increase in 2019, slight decreases to 6.6% and 6.8% in 2020 and 2021, respectively, followed by rises to 7.1% and 7.2% in 2022 and 2023. This steady growth suggests a strategic and controlled expansion of China’s defense sector.
The augmented military funding coincides with President Xi Jinping’s corruption crackdown, which resulted in the removal of several high-ranking officials, including ex-Defence Minister Li Shangfu. This purge is seen as a step towards transparency and consolidates President Xi’s vision of a globally recognized China. However, it triggered a power shift within China’s military hierarchy, sparking ongoing tension and challenges.
China’s defense expenditures, now the world’s second-highest
China’s defense expenditures, now the world’s second-highest (after the United States), reflect the emerging power and sophistication of the Chinese military. However, concerns are raised globally as this enlargement has the potential to further fuel the development and modernization of China’s military abilities.
China firmly opposes any separatist activities directed at ‘Taiwan Independence’, emphasizing reunification under the “one China” framework. Despite escalating tensions, China stands firm, viewing reunification as a “historical inevitability.”
The boost in military expenditures comes amid increased territorial disputes with neighboring countries in the South China Sea and an intensifying rivalry with the United States. Such instances of military intimidation not only threaten regional security but could have global implications. This significant Chinese military expenditure raises international concerns about its long-term motives.
