China’s growth in defense spending is slow this year

Despite regional tensions in the South China Sea and problems with South Korea, China’s military budget will be increased by only 7% this year. This is the lowest growth rate for defense since 2010. The total defense budget will account for 1.3% of China’s projected GDP this year. Last year the defense budget growth rate was 7.6%.

Some sections in China were pressing for a bigger increase in defense budget owing to regional tension as well as increase in US defense budget under President Donald Trump. The Trump administration has proposed a 10% increase in the US defense budget this year. According to a retired senior general, China would need to increase the defense budget by 12% if it wants to match the US rise.

The statement about the defense budget was made by Fu Ying, the spokeswomen for the legislature. She also said that China’s military has purely defensive goals. “We advocate dialogue for peaceful resolutions, while at the same time, we need to possess the ability to defend our sovereignty and interests,” Fu said. “The strengthening of Chinese capabilities benefits the preservation of peace and security in this region, and not the opposite.”

The lower defense budget can be attributed to a slowdown in China’s economy. This year the economic growth is expected to be about 6.5% compared to last year’s 7%. The actual amount that will be spent on defense will be released on Sunday during Premier Li Keqiang’s address to the parliament.

(Reporting by Ananya Dutta; Editing by Damodar Kalyan)