China's Military Budget Rockets 7.2% In 2025: No Signs Of Cooling Down

China’s Military Budget Rockets 7.2% in 2025: No Signs of Cooling Down

In a development that reflects its unstoppable drive for military modernization, China has doubled down on its defense budget for 2025, raising it 7.2% to 1.784665 trillion yuan (nearly $249 billion). Revealed during the third session of the 14th National People’s Congress (NPC) on March 5, 2025, this is the 10th year in a row with single-digit growth, marking steady but serious investment in the People’s Liberation Army (PLA).

Rather than trimming, China’s defense budget continues to power its expansionist goals for world influence and local supremacy, causing eyebrows to be raised among Western nations and regional neighbors in equal measure.
A Steady Climb Amid Global Tensions

China’s 2025 defense budget, the second-largest in the world after that of the United States at $850 billion, indicates a steady 7.2% growth rate over the last three years. Though Beijing insists its defense expenditure is below 1.5% of GDP, lower than the international average of 2.4%, the enormous size of its economy makes this enormous spending for the PLA.

The budget finances manpowers, training, equipment upkeep, and the acquisition of advanced technologies such as stealth fighter planes, aircraft carriers, and cyber warfare systems.

This growth comes in the face of increased geopolitical tensions, from Taiwan to the South China Sea, and in the context of global military expenditure hitting a record $2.718 trillion in 2024. China’s spending outpaces its 5% economic growth target of 2025, reflecting its focus on military power above domestic economic challenges, including a deflating housing bubble.

What’s Driving the Budget?

The 2025 budget is focused on supporting combat effectiveness and promoting military modernization, with major projects being:

Naval Expansion: China, with the world’s largest navy already, is improving its ocean power with ships such as the Fujian aircraft carrier, which started sea trials in 2024, and the Sichuan, the first electromagnetic catapult-driven amphibious assault ship in the world, commissioned in December 2024.
Air Force Developments: The unveiling of the J-35A stealth fighter aircraft at Airshow China 2024 reflects China’s thrust for air dominance. Mass production plans in 2025 indicate substantial investment in future-generation aircraft.
Cyber and Nuclear Strengths: The PLA is stepping up its cyberwarfare and nuclear capabilities to retain a strategic advantage in contemporary warfare arenas.

Chinese military spokesperson Wu Qian added that the budget is the “bare minimum” to protect national sovereignty and maintain China’s global obligations, including humanitarian assistance and disaster relief. Critics, however, think the official budget undereports actual spending, with sources such as the Stockholm International Peace Research Institute (SIPRI) estimating actual 2024 expenditure was $314 billion, possibly rising still higher in 2025.

Global and Regional Implications

China’s continued buildup of the military has raised alarm in Western countries and Indo-Pacific neighbors. The U.S., with 37% of world military expenditure, sees China’s rise as a strategic threat, inviting calls for more NATO expenditure and regional partnerships. Taiwan, whose defense budget is 12 times less than that of China, and Japan, which raised its expenditure by 21% to $55.3 billion in 2024, are especially concerned about Beijing’s increasing assertiveness in the Taiwan Strait and South China Sea.

While Beijing denies advocating a policy of defense, its actions—in excess of 1,700 sorties in Taiwan’s air defense identification zone in 2024—have stoked the “China threat” mythology. Analysts such as Wen-Ti Sung of the Atlantic Council point out that China’s modest increases in budget present stability, compared to the U.S.’s inconsistent defense priorities under new administration.

The Transparency Debate

China’s military spending is in the focus of international concern as it is underreported. The state budget does not account for expenses such as importation of weapons, the People’s Armed Police, and dual-use research, so estimates place real expenditures at 30-90% above, ranging from $330 billion to $471 billion in 2024. Some of America’s intelligence estimates place it even at $700 billion, but these are disputed for being based on defective purchasing power parity (PPP) estimates.

In contrast to the U.S., which makes full budget breakdowns public, China only releases a single topline number, without showing allocations to particular military branches. This absence of disclosures creates assumptions, and experts have demanded more detailed information so that uncertainty in global defense planning can be minimized.

Looking Ahead

Rather than slashing, China’s 2025 defense budget reiterates President Xi Jinping’s vision to make China a military superpower by 2035. By investing in high-end hardware, soldier comfort, and combat preparedness, the PLA is set to extend its reach across the Indo-Pacific and beyond. As military budgets around the world explode, China’s gradual increments telegraph a multi-year effort to challenge American dominance without telling a tale of recklessness.

For investors and businesses, China’s defense priorities might be driving opportunities in defense technology and dual-use sectors, but they increase geopolitical risks in a highly volatile region as well. While the world observes, China’s “giant ship” of military ambition keeps sailing ahead, cutting through diplomatic and economic waves with unrelenting determination.

General Overview

Q1. How much is China’s defense budget for 2025?
A1. China has set its 2025 defense budget at 1.784665 trillion yuan (~$249 billion).

Q2. By what percentage did China’s military budget increase in 2025?
A2. It rose by 7.2% compared to the previous year.

Q3. How many years in a row has China increased its defense budget?
A3. 2025 marks the 10th consecutive year of single-digit growth.

Q4. How does China’s defense budget compare globally?
A4. It is the second-largest in the world, after the U.S. ($850 billion).

Q5. What share of GDP does China’s defense budget represent?
A5. Officially, it’s said to be below 1.5% of GDP, lower than the global average of 2.4%.

Drivers & Strategy

Q6. Why is China increasing its defense budget?
A6. To modernize the PLA, enhance combat readiness, and strengthen influence in Asia and globally.

Q7. What timeline has China set for military modernization?
A7. China aims to be a world-class military power by 2035.

Q8. What are the main priorities in the 2025 defense budget?
A8. Naval expansion, advanced air power, cyber warfare, and nuclear deterrence.

Q9. How does China justify its budget increase?
A9. Officials claim it is the “bare minimum” needed for sovereignty and global obligations.

Q10. How does this compare with China’s economic growth?
A10. Defense spending grew faster (7.2%) than the GDP growth target (5%) in 2025.

Military Focus Areas

Q11. Which branch of the PLA is getting the most attention?
A11. The Navy and Air Force, along with cyber and nuclear forces.

Q12. What major naval projects are funded in 2025?
A12. The Fujian aircraft carrier (sea trials in 2024) and the Sichuan assault ship (commissioned in 2024).

Q13. What is the significance of the Sichuan ship?
A13. It’s the world’s first electromagnetic catapult-driven amphibious assault ship.

Q14. What new aircraft is part of the budget?
A14. The J-35A stealth fighter, unveiled in 2024, with mass production planned in 2025.

Q15. Is cyber warfare part of the 2025 plan?
A15. Yes, cyber capabilities are a major investment area.

Transparency & Concerns

Q16. Is China’s military spending fully transparent?
A16. No, China only publishes a topline figure, without breakdowns.

Q17. What expenses are not included in China’s official defense budget?
A17. Weapon imports, People’s Armed Police, and dual-use research.

Q18. How much higher could real spending be?
A18. Estimates suggest 30–90% higher, ranging from $330B to $471B in 2024.

Q19. What do U.S. estimates say about China’s defense spending?
A19. Some U.S. intelligence puts it as high as $700B, though contested.

Q20. Why is there concern about transparency?
A20. Lack of detail fuels uncertainty in global defense planning.

Global Implications

Q21. How are Western nations reacting?
A21. With concern, seeing it as a strategic challenge.

Q22. How does the U.S. compare to China in defense spending?
A22. The U.S. spends about $850B, around 3.5 times China’s official figure.

Q23. How is Taiwan responding?
A23. Taiwan is worried, as its defense budget is 12 times smaller than China’s.

Q24. What about Japan’s defense posture?
A24. Japan increased defense spending by 21% to $55.3B in 2024.

Q25. What does China say about its defense policy?
A25. Beijing insists it is for defense and peacekeeping, not aggression.

Regional Tensions

Q26. What role does Taiwan play in China’s military focus?
A26. Taiwan remains a key driver of PLA readiness and spending.

Q27. How many sorties did China fly into Taiwan’s ADIZ in 2024?
A27. More than 1,700 sorties.

Q28. What about the South China Sea?
A28. China is expanding naval presence to assert regional dominance.

Q29. How are Indo-Pacific nations reacting?
A29. They are strengthening alliances with the U.S. and NATO.

Q30. Why is China considered a “long-term threat”?
A30. Because of gradual, sustained buildup aimed at shifting power balances.

Economic Angle

Q31. How does China’s military spending affect its economy?
A31. It diverts resources from domestic challenges like the housing crisis.

Q32. What industries benefit from the defense budget?
A32. Defense tech, aerospace, naval engineering, and dual-use sectors.

Q33. Could military spending attract investors?
A33. Yes, but it also raises geopolitical risks.

Q34. Is China’s defense budget sustainable?
A34. Yes, given its large economy, but it may strain social spending.

Q35. Is the defense budget higher than inflation?
A35. Yes, it outpaces economic and wage growth.

Comparisons & Context

Q36. How does China’s growth compare with NATO?
A36. NATO countries are urged to raise spending in response to China.

Q37. How does China’s budget compare with Russia’s?
A37. China’s spending far exceeds Russia’s estimated $109B in 2024.

Q38. How much does global military spending total?
A38. Around $2.718 trillion in 2024.

Q39. Is China’s growth rate considered aggressive?
A39. Some say steady but serious, not reckless.

Q40. How does China describe its military ambitions?
A40. As part of “national rejuvenation” and global responsibilities.

Looking Forward

Q41. What is China’s military goal for 2035?
A41. To be a fully modern, world-class military power.

Q42. Could China surpass the U.S. in defense spending?
A42. Not soon, but gap may narrow if trends continue.

Q43. How are analysts interpreting China’s budget?
A43. As a long-term, stable investment rather than reckless escalation.

Q44. What new technologies is China prioritizing?
A44. Stealth aircraft, AI, cyber warfare, and naval power.

Q45. Will China’s budget keep growing?
A45. Likely, though at single-digit rates for stability.

Miscellaneous

Q46. When was the budget announced?
A46. On March 5, 2025, at the 14th National People’s Congress.

Q47. Who announced it?
A47. It was revealed during the third session of the NPC.

Q48. What did spokesperson Wu Qian say?
A48. He called the budget the “bare minimum” to protect sovereignty.

Q49. What’s the biggest concern among critics?
A49. That actual spending is underreported and much higher than claimed.

Q50. What does this mean for global security?
A50. It signals rising tensions, stronger alliances, and a shift in power balances.

China’s Military Budget Rockets 7.2% in 2025: No Signs of Cooling Down