China Increases Defence Budget to USD 275 Billion Amid Military Modernisation

China announced a defence budget increase of about 10 percent to approximately USD 275 billion for 2026, marking a USD 25 billion rise from last year. Premier Li Qiang highlighted ongoing military modernization efforts aimed at closing the gap with the US, including advanced missiles, naval vessels, and stealth aircraft. Despite this growth, official reports describe China's defence spending as modest relative to GDP and per capita metrics. The budget rise occurs amid a high-profile military leadership purge and regional tensions, notably concerning Taiwan and neighbouring countries.