China Increases Defense Budget for 2 Consecutive Years... This Year's Defense Budget 279 Trillion Won

Security Threats from US-led Alliances like Quad and AUKUS
China's Defense Budget Surpasses 1 Trillion Yuan for the First Time in 2017 and Increases Annually

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Amid rapidly changing international affairs due to Russia's invasion of Ukraine, China has increased its defense budget for the second consecutive year.

On the 5th, China's Ministry of Finance reported at the annual session of the National People's Congress (NPC) held at the Great Hall of the People in Beijing that this year's defense budget was set at 1.45045 trillion yuan (approximately 279 trillion KRW), a 7.1% increase compared to the previous year.

Accordingly, China's defense budget has increased for two consecutive years since 2020.

China's defense budget growth rate peaked at 12.2% in 2014, then showed a downward trend each year with 10.1% in 2015, 7.6% in 2016, 7.0% in 2017, 8.1% in 2018, 7.5% in 2019, and 6.6% in 2020, before returning to an increase of 6.8% last year.

The increase in China's defense budget appears to be in consideration of changes in the international situation, such as Russia's invasion of Ukraine. The Chinese government increased its defense budget by 12.2% to 808.2 billion yuan in 2014 when Russia annexed the Crimean Peninsula. Also, considering the peak tensions between the U.S. and China over the Taiwan Strait, this year's defense budget is expected to be increased.

Earlier, the state-run Global Times claimed that the Chinese government would increase the defense budget by more than 7%, asserting that China faces security threats from U.S.-led containment alliances such as the Quad and AUKUS.

It also emphasized the justification for the defense budget increase by pointing out that last year the U.S. military conducted military exercises by dispatching aircraft carrier strike groups 13 times to the South China Sea under the pretext of "freedom of navigation," and that at least 11 nuclear-powered submarines even intruded into Chinese territorial waters.

However, the Global Times stressed that considering global concerns about China's military rise, China's defense spending accounts for only 1.3% of its GDP. This is only about half of the global average of 2.6%.

Nevertheless, when looking at the amount of China's defense budget, China's determination to become a military power is evident. China's defense budget surpassed 1 trillion yuan for the first time in 2017, then increased annually to 1.1069 trillion yuan in 2018, 1.1899 trillion yuan in 2019, and 1.268 trillion yuan in 2020. During this period, China's economic growth rate declined annually from 8.8% in 2017 to 6.6% in 2018, 6.0% in 2019, and 2.3% in 2020, yet defense spending increased every year. Considering that China's defense budget was 670.2 billion yuan in 2012, defense spending has more than doubled in ten years.

Meanwhile, the Chinese leadership has announced a new military vision to achieve the goal of "military modernization" by 2027, the 100th anniversary of the founding of the Chinese People's Liberation Army.