The 2026 central and local budget draft report submitted to the Fourth Session of the 14th National People's Congress for review disclosed that China's defense expenditure for 2026 will be RMB 1,909.561 billion, a year-on-year increase of 7 percent — a slight decrease from 2025's 7.2 percent. This marks the 11th consecutive year of single-digit growth for China's defense budget, according to reports.
Military expert Song Zhongping told reporters that the 7 percent increase in defense spending is a significant reflection of the moderate development of national defense construction. "With military expenditure growing in step with economic development while maintaining restraint, the 7 percent increase is both reasonable and normal, holding positive significance for military modernization," Song said.
Song analyzed that China's military expenditure growth primarily serves three purposes: first, addressing inflation to ensure steady improvement in military personnel treatment and personnel costs; second, meeting equipment procurement, maintenance, and new equipment research and development needs, with associated costs rising alongside prices; third, supporting continuously intensified combat training, requiring corresponding increases in training funding.
"At the same time, national defense and military reform have entered deep waters. Past issues with military spending — including unreasonable allocation, inefficiency, and insufficient coordination — are now being addressed through optimized expenditure management to ensure funds are used where they matter most," Song stated. Funds saved through improved efficiency and standardized management can be redirected to critical areas, working alongside new budget allocations to better meet the actual needs of national defense construction and military preparedness.
Song emphasized that China firmly adheres to an active defense military strategy, pursuing neither external expansion nor global hegemony. Defense expenditure growth has consistently followed the principle of "moderation." China seeks balanced development between economic construction and national defense construction, rather than "sab-rattling militarism."
"Moreover, China possesses an independent and complete defense industrial system with strong war potential and rapid defense investment growth capacity. Should conflict or war arise, China is fully capable of increasing military investment. Currently in a peaceful development environment, state finances must prioritize education, science and technology, and people's livelihoods — therefore, defense investment must adhere to moderate, reasonable, and necessary principles," Song concluded.
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