China to increase its defense budget 7.2% this year

KARACHI, Pakistan

The 14th National People's Congress (NPC), China's national legislature, opened its third session Wednesday, with Beijing announcing that it will increase the country’s defense budget by 7.2% this year, state media reported.

According to a draft budget report submitted to the national legislature for deliberation, the planned defense expenditure will be 1.784665 trillion yuan (about $249 billion) this year, Xinhua News Agency reported.

Held at the Great Hall of the People in Beijing, the opening session was attended by President Xi Jinping and other leaders.

Lawmakers reviewed a government work report presented by Premier Li Qiang at the meeting.

They also reviewed a report from the State Council on the implementation of the 2024 plan for national economic and social development and on the 2025 draft plan, as well as the draft plan for national economic and social development in 2025

According to the work report, Beijing has set an economic growth target of around 5% in 2025.

China has struggled to raise consumption and avert deflation for months as slow spending, a property slump, and soaring local government debt all weigh on growth.

The report also outlines an array of other key development goals for this year, including maintaining a surveyed urban unemployment rate of around 5.5%, creating over 12 million new urban jobs and increasing the consumer price index by about 2%.

The country achieved economic growth of 5% in 2024 as an “impactful policy package, along with other pro-growth measures, helped fuel strong economic momentum,” the report said.

It said fostering high-quality development is a key focus on this year's agenda, “with priorities ranging from stimulating domestic demand to developing new quality productive forces.”

"We will take a people-centered approach and place a stronger economic policy focus on improving living standards and boosting consumer spending," the work report said.

Domestic demand will be made the main engine and anchor of economic growth, the report said.

Ultra-long special treasury bonds totaling 300 billion yuan ($41.2 billion) will be issued to support consumer goods trade-in programs.

China aims to foster emerging and future industries such as quantum technology and the low-altitude economy, accelerate the upgrading of traditional industries, and combine digital technologies including artificial intelligence (AI) with manufacturing and market strengths, according to the report.