China’s Defense Budget Is Bigger Than You Think |
On paper, Beijing spends less on defense than the US. In practice, though, that comparison is misleading. Focusing on the headline figure rather than the long-term trajectory misses the bigger picture: just how quickly President Xi Jinping’s military modernization plans are progressing.
When the budget is announced Thursday at the National People’s Congress, the country’s most important annual political gathering,1the data will likely show another 7% increase. Expenditure in 2025 came in at about $245 billion, versus Washington’s approximately $900 billion. However, the US Defense Department estimates Beijing’s actual outlay could be around 40% to 90% higher than the published number.