China Increases 2026 Defence Budget to USD 275 Billion Amid Military Modernization

China announced a 7% increase in its 2026 defence budget to approximately USD 275 billion, marking a USD 25 billion rise from 2025. This boost supports ongoing military modernization efforts aimed at matching US capabilities, including advanced missiles, naval vessels, and stealth aircraft. Despite the increase, official reports describe China's defence spending as modest relative to GDP and per capita metrics. The budget rise occurs amid internal military disciplinary actions and regional tensions, prompting neighbouring countries to reassess their defence expenditures.