TEMPO.CO, Jakarta – China increased military spending by 7.2 percent this year, to around 1.55 trillion yuan or more than Rp 3,436.26 trillion. This was revealed in the draft state budget of China which was published at the end of this week.
“National defense spending is 1,553.7 billion yuan, an increase of 7.2 percent,” explained Premier Li Keqiang when asking the armed forces to increase combat readiness, at the opening of the annual session of the National People’s Congress (NPC), Sunday, March 5, 2023.
The defense budget will be closely watched by China’s neighbors and the United States, which are concerned about Beijing’s strategic intentions and military developments. Especially as tensions have risen in recent years over Taiwan.
In his work report for the annual session of parliament, Li said military operations, capacity building and combat readiness should be “well-coordinated in fulfilling key tasks”.
“Our armed forces, focusing on the goal of commemorating the centenary of the People’s Liberation Army in 2027, must work to carry out military operations, increase combat readiness and enhance military capabilities,” he said in his State of the Union address.
The increase in defense spending this year marked the eighth straight single-digit increase. As in previous years, no breakdown of spending was provided, only the total amount and the rate of increase.
Increased spending outpaced targeted economic growth of around 5 percent, which was slightly below last year’s target as the world’s second-largest economy faces domestic challenges.
Beijing is nervous about challenges on the frontline ranging from Chinese-claimed Taiwan to US naval and air missions in the disputed South China Sea near Chinese-occupied islands.
China staged war games near Taiwan last August to express anger at then-US Speaker of the US House of Representatives, Nancy Pelosi,’s visit to Taipei.
Li Mingjiang, associate professor at the S. Rajaratnam School of International Studies in Singapore, said defense spending that beat economic growth estimates showed China anticipates facing greater pressure in its external security environment, especially from the United States and the Taiwan issue.
“China’s leadership is clearly intensifying efforts to prepare the country militarily for all potential security challenges, including unforeseen situations,” he said.
China, with the world’s largest military, is busy adding new hardware, including aircraft carriers and stealth fighters.
