BEIJING (AFP) – China said Sunday its defense spending would rise at the fastest pace in four years, warning of “escalating” threats from abroad at a meeting of its rubber-stamp parliament that is set to hand Xi Jinping a third term as president.
The increase in the world’s second-largest defence budget came as Beijing announced an economic growth goal of around five percent for this year -- one of its lowest in decades.
The country’s planned budgets for the year put defence spending at 1.55 trillion yuan ($225 billion), a 7.2 percent rise and the quickest rate of increase since 2019. It officially rose 7.1 percent last year.
Outgoing Premier Li Keqiang told delegates to the National People’s Congress (NPC) that “external attempts to suppress and contain China are escalating”.
“The armed forces should intensify military training and preparedness across the board,” he said as he presented the government’s annual work report to thousands of amassed delegates in Beijing’s Great Hall of the People.
The military must “devote greater energy to training under combat conditions, and... strengthen military work in all directions and domains”, he added.
China’s defense spending still pales in comparison with the United States, which has allotted over $800 billion for its military this year.
But analysts have said Beijing spends much more money than the officially announced sums.
The ramped-up spending comes during a low point in relations between China and the United States.
Beijing and Washington have butted heads in recent years over trade, human rights and other issues, but relations soured even further last month when the U.S. shot down a Chinese balloon it said was being used for surveillance -- a claim strenuously denied by Beijing.
Sunday’s conservative economic goals followed China posting just three percent growth last year, missing its stated target of around 5.5 percent by a wide margin as the economy strained under the impact of strict Covid-19 containment policies and a property crisis.
“The growth target came in at the low end of the market expectation. But it should be taken as a floor of growth the government is willing to tolerate,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
Li struck a bullish tone in his speech, saying China’s economy “is staging a steady recovery and demonstrating vast potential and momentum for further growth”.