China announces 7% increase in defence spending as part of military modernisation drive

China has announced a 7% rise in its defence budget, marking the lowest rate of increase since 2021, according to reports. The announcement was made ahead of the opening session of the Chinese People's Political Consultative Conference at the Great Hall of the People in Beijing on March 4, 2026.

Military delegates were seen gathering at Tiananmen Square as the country outlined its plans to modernise its armed forces by 2035. The increase in spending is part of a broader effort by Chinese authorities to upgrade military capabilities and achieve modernisation goals within the next decade.

Sources indicate that the 7% budget increase reflects China's ongoing commitment to strengthening its national defence, while also taking into account economic considerations. The latest figure represents a slower pace of growth compared to previous years, but officials have reiterated their intention to continue investing in military development.

The focus on modernisation includes advancements in technology and equipment, as well as improvements in training and organisational structure. The government has stated its intention to achieve significant progress in these areas by 2035.

Observers note that the defence budget announcement comes at a time when China is seeking to balance its security needs with broader economic priorities. The decision to raise defence spending by 7% is seen as a measured approach in line with the country's long-term strategic objectives.

There were no further details provided regarding specific allocations or projects within the defence budget. The announcement was made as part of the annual political meetings in Beijing, which set the direction for the country's policies in the coming year.