China to increase its defence spending by 7.2 per cent in 2024

China has announced plans to increase its defense spending by 7.2 percent in 2024, signaling a tougher stance toward Taiwan.

Official reports indicate that this year’s military budget has nearly doubled during Xi Jinping’s more than a decade-long tenure, matching last year’s growth rate and surpassing the government’s economic growth forecast. Alongside releasing the budget figures, China has also hardened its position on Taiwan, omitting any mention of “peaceful reunification” in Premier Li Qiang’s government work report delivered at the opening of the National People’s Congress (NPC) on Tuesday, as reported by Reuters.

Tensions in East Asia, particularly concerning Taiwan, have escalated in recent years as China asserts its claims over the democratically governed island. Li Mingjiang, a defense expert at the Rajaratnam School of International Studies (RSIS) in Singapore, emphasized Taiwan’s significance in Beijing’s defense strategy, even amid economic challenges in China. “China aims to bolster its military capabilities over the next decade to ensure readiness for potential conflict,” Li stated.

Since assuming the presidency and commander-in-chief role in 2013, Xi Jinping has overseen a significant increase in China’s defense budget, rising from 720 billion yuan in 2013 to 1.67 trillion yuan ($230.60 billion) in 2024. Throughout his tenure, military spending consistently outpaced the annual domestic economic growth target, which remains at about five percent for 2024, mirroring last year’s goal.

According to the London-based International Institute for Strategic Studies (IISS), China has increased its defense spending for the 30th consecutive year, with much of the budget likely allocated to acquiring new military equipment, as indicated by a February 2024 IISS report.

However, despite defense spending exceeding GDP growth, it has remained around 1.3 percent of the overall GDP over the past decade, noted James Char, a security analyst at the RSIS. “The sustainability of this trend will depend on China’s long-term economic prospects,” Char added.

In the government work report, China reiterated its call for “reunification” with Taiwan but omitted the term “peaceful,” underscoring its resolve to pursue reunification assertively.