China plans to increase defense budget by 7% in 2026

China plans to increase its defense spending by 7 percent in 2026, bringing the total military budget to 1.909 trillion yuan (approximately $277 billion), according to a draft document presented to the country’s legislature.

AzerNEWS reports that the proposal was published on the opening day of the fourth session of the 14th National People’s Congress, China’s top legislative body.

According to the draft, national defense expenditures will rise by 7 percent to reach 1.909 trillion 561 million yuan, reflecting Beijing’s continued focus on strengthening its military capabilities amid an evolving global security environment.

The document also outlines the government’s broader fiscal priorities for the coming year. It stresses the need to strictly limit routine government spending, while ensuring sufficient funding for key sectors.

In addition, the draft highlights the importance of establishing central reserves of material resources and meeting the country’s financial obligations, including coupon payments on government bonds.

The planned increase in defense spending continues China’s long-standing policy of gradually expanding its military budget as the country pursues modernization of its armed forces and seeks to enhance its strategic capabilities.