March 5, 2026
BEIJING – China has set a 7 per cent hike in defence spending for 2026, as the country seeks to modernise its military at a steady pace despite an economic slowdown and an unprecedented corruption purge.
The hike is in line with similar increases of about 7 per cent over the past five years. It had dipped below 10 per cent for the first time in 2016, after an average increase of about 15 per cent in the previous two decades.
China’s 2026 official defence budget of 1.909 trillion yuan (S$352 billion) was disclosed in the Chinese government’s budget estimates issued on March 5, at the opening of the National People’s Congress (NPC) annual meeting.
China’s top leaders are gathering in Beijing this week, as part of the country’s biggest political event of the year, called the Two Sessions.
The defence budget is closely watched as the gap between China’s military strength and those of other countries in the region continues to widen. Its modernisation efforts show little sign of slowing down even amid the unprecedented corruption purge in the military’s top brass.
Since January 2026, the Central Military Commission, which oversees China’s armed forces, has been reduced from seven to just two members: chairman Xi Jinping and vice-chairman Zhang Shengmin.
A recent study by the Washington-headquartered Center for Strategic and International Studies think-tank showed that 101 top generals in the People’s Liberation Army (PLA) have been officially or potentially purged since 2022.
China aims to have a world-class fighting force by 2050, although international attention has focused on Beijing’s preparations to become capable of military action over Taiwan by 2027 – the 100th year of the founding of the PLA.
But a slowing economy could exert pressure on military expenditure, which analysts say could be higher than the official figure as it does not include items such as research and development and paramilitary forces.
China has set its economic growth target at a range of 4.5 per cent to 5 per cent for 2026 – the first lowering in three years, from a target of around 5 per cent.