China has announced a 7.2% increase in its defence budget for 2024, raising military spending to $249 billion as the country continues its aggressive modernization efforts amid escalating regional tensions. The budget, which was revealed in a draft report submitted to the National People's Congress (NPC) by Premier Li Qiang, underscores China’s strategic focus on military expansion in the Taiwan Strait, South China Sea, and its border with India. This increase follows China’s $232 billion military budget in 2023 and solidifies its position as the world’s second-largest defence spender after the United States. While the growth rate is lower than the double-digit increases seen in previous decades, the latest allocation reflects Beijing’s commitment to upgrading its naval, aerial, and land warfare capabilities.
 

China’s Military Spending: Key Takeaways

• The 2024 defence budget stands at 1.78 trillion yuan ($249 billion), marking a 7.2% annual increase.
• China’s military budget is over three times India’s, which is $81 billion for FY 2024-25.
• The PLA continues its expansion, focusing on advanced naval ships, aircraft carriers, and stealth fighter jets.
• Beijing is increasing military preparedness in the Taiwan Strait, the South China Sea, and along the Line of Actual Control (LAC) with India.
• Premier Li Qiang reaffirmed China’s stance against separatist movements, signaling a strong policy toward Taiwan.

Impact on Geopolitical and Regional Security

1. Taiwan and US-China Rivalry

Tensions over Taiwan remain a major flashpoint in China’s military strategy. The Chinese government has repeatedly asserted its claim over Taiwan and has ramped up military drills in the region. The increased defence spending will likely strengthen China’s naval and aerial presence, raising concerns for the United States and its allies, including Japan and Australia.The US maintains its commitment to defending Taiwan, and this budget increase may lead to a military buildup in the Indo-Pacific region, intensifying US-China competition.

2. South China Sea Disputes

The South China Sea remains a hotly contested maritime zone, with China deploying naval patrols and establishing artificial islands to assert dominance. The latest military budget suggests continued naval expansion, potentially escalating tensions with Vietnam, the Philippines, and Malaysia.China’s increased military presence in the South China Sea could also lead to frequent confrontations with the US Navy, which regularly conducts freedom of navigation operations (FONOPs) in the region.

3. India-China Border and LAC Tensions

The India-China border standoff along the LAC in Eastern Ladakh remains a major concern. Since 2020, both nations have deployed additional troops and enhanced border infrastructure, but tensions persist.

• India’s Response: India has allocated ₹6.81 trillion ($81 billion) to defence spending for FY 2024-25, focusing on border security and modernization.
• China’s Military Presence: The increase in China’s defence budget could escalate military activity along the LAC, leading India to strengthen its military posture in response.

China’s Economic Growth Target and Military Priorities

In addition to expanding its military budget, China has set an economic growth target of 5% for 2025. According to Shen Danyang, head of the government work report drafting team, the growth target was determined after thorough analysis of policy conditions and economic trajectories.Despite challenges in the real estate sector, trade disruptions, and global economic slowdowns, China remains focused on technological advancements in defence, including cyber warfare, artificial intelligence, and hypersonic weapons.
 

China’s Military Modernization and Future Developments

China's defence spending will likely support several key military initiatives, including:

• Naval Expansion: Continued construction of aircraft carriers, advanced submarines, and destroyers.
• Stealth Fighter Jets: Development of next-generation J-20 and J-35 stealth aircraft.
• Nuclear Deterrence: Strengthening its strategic missile and nuclear weapons programs.
• Cyber and Space Warfare: Increased focus on AI-driven military capabilities and space-based defence systems.

How Will This Impact Global Security?

• US-China Relations: The Biden administration is expected to monitor China’s military expansion, leading to potential countermeasures in the Indo-Pacific.
• India’s Defence Strategy: India will likely boost military cooperation with QUAD nations (US, Japan, Australia) to counterbalance China’s growing influence.
• Asia-Pacific Stability: China’s rising military expenditure may trigger increased defence spending from regional players, including Japan, South Korea, and Australia.

What Lies Ahead?

China’s $249 billion defence budget signals continued military growth and geopolitical assertiveness, particularly in the Taiwan Strait, South China Sea, and LAC. While Beijing aims to modernize its armed forces, neighboring countries and global powers will closely watch how China deploys its expanding defence capabilities amid rising tensions in the Indo-Pacific.