China Increases Diplomatic Budget More Than Defense, Contrasting With US 'Voluntary Isolation'

Diplomatic Budget Increased by 8.4% to 12.8 Trillion Won Year-on-Year
China Has Outpaced the U.S. in Overseas Missions Since 2019

Li Chang, Premier of the State Council of China, is delivering the government work report at the opening ceremony of the National People's Congress (NPC) held at the Great Hall of the People in Beijing on the 5th. / Photo by Reuters and Yonhap News

On March 6, the South China Morning Post (SCMP) reported that China's increase in this year's diplomatic budget surpasses the growth rate of its defense budget, drawing a contrast with the isolationism of the Donald Trump administration, which prioritized "America First."

During the opening session of the National People's Congress (NPC) held the previous day, the Chinese Ministry of Finance announced that this year's diplomatic budget has been set at 64.56 billion yuan (approximately 12.8 trillion won), an 8.4% increase from last year. This rate of increase is higher than last year's 6.6% and also exceeds the 7.2% annual increase in the defense budget for the third consecutive year.

Premier Li Chang, in his government work report at the NPC opening ceremony, stated, "We will uphold an independent and autonomous policy of peaceful diplomacy and continue on the path of peaceful development," adding, "We will safeguard international fairness and justice."

Premier Li further emphasized, "China is prepared to work with other members of the international community to promote a multipolar world based on equality and quality, drive inclusive economic globalization, and actively participate in the reform and development of the global governance system."

Notably, the focus of the "Belt and Road" (land and maritime Silk Road) initiative shifted this year from "strengthening" to "promoting key projects." This signals China's intention to expand its influence over the Global South-referring to emerging and developing countries mainly located in the Southern Hemisphere-and to further broaden its "global initiatives." China is also expected to host a range of diplomatic events this year, including the Shanghai Cooperation Organization (SCO) Summit and a military parade commemorating the 80th anniversary of the end of World War II.

China's emphasis on diplomacy comes as President Trump has imposed additional tariffs on China and other countries, and withdrawn from various international organizations. Since taking office, President Trump has implemented administrative measures such as freezing foreign aid and withdrawing from the Paris Climate Agreement, the World Health Organization (WHO), and the United Nations Human Rights Council.

Regarding the increase in China's diplomatic budget, Wang Wei, a professor at the School of International Relations at Renmin University of China, told SCMP, "China is trying to show the world that while it focuses on its own economy, it is also striving to provide more public goods on the international stage."

According to the "Global Diplomacy Index Report" published by the Australian think tank Lowy Institute, China had 274 overseas diplomatic missions as of 2023, the highest in the world. The United States ranked second with 271 missions. Since being overtaken by China in 2019, the U.S. has not reversed this trend for five years. Recently, the U.S. has also been reducing diplomatic personnel as part of government workforce efficiency measures, which could further widen the gap between China and the U.S.

Meanwhile, attention is focused on the message that Wang Yi, Director of the Office of the Central Foreign Affairs Commission of the Communist Party of China and concurrently Foreign Minister, will deliver to both domestic and international media at a press conference on the morning of March 7. Regarding U.S. pressure on China, Wang, who leads China's diplomatic efforts, stated at the Munich Security Conference (MSC) held in Germany in mid-February, "If the United States suppresses China, we will have no choice but to stand our ground to the very end."