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World · 5 March 2026

China allocates £207bn for 7% defence budget increase.

China allocates £207bn for 7% defence budget increase.

Beijing has confirmed a 7% increase in its 2026 national defence budget, allocating 1.91 trillion yuan (approximately £207 billion) to military modernisation. This marks over a decade of single-digit growth, even as China lowers its annual GDP target to 4.5-5%. The funds are earmarked for hypersonic strike capabilities and AI-driven systems, reflecting a pivot toward a more agile, high-tech force. Amid Middle Eastern energy shocks, this expenditure underscores a resolute commitment to securing vital trade corridors and sovereign territory.

Reported by Global Times · How we write briefs

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