China to increase its defense budget 7.2% this year
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China's 14th National People's Congress opens its third session, announcing a 7.2% increase in China’s defense budget and setting a 5% economic growth target for 2025.
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Chinese military personnel watch over Tiananmen Square from a rooftop across from the Great Hall of the People, as the sun rises before the opening session of the National People's Congress in Beijing on March 5, 2015. (AP)
The 14th National People's Congress (NPC), China's national legislature, began its third session on Wednesday with Beijing announcing a 7.2% increase in the country’s defense budget this year, according to state media.
A draft budget report submitted for review outlined defense spending at 1.784665 trillion yuan (around $249 billion).
The opening session, held at the Great Hall of the People in Beijing, was attended by President Xi Jinping and other officials. Lawmakers also examined a government work report delivered by Premier Li Qiang.
The session also included a review of a State Council report on the implementation of the 2024 national economic and social development plan, as well as the draft plan for 2025. That said, the work report revealed that Beijing has set a 5% economic growth target for 2025.
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2025 vision
The report outlined several key goals for this year, including maintaining an urban unemployment rate of around 5.5%, creating over 12 million new urban jobs, and raising the consumer price index by approximately 2%.
The country achieved a 5% economic growth in 2024, driven by an "impactful policy package" and other pro-growth measures that fueled strong momentum, according to the report.
It highlighted that fostering high-quality development is a key focus for this year, with priorities including stimulating domestic demand and developing new, high-quality productive forces.
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"We will take a people-centered approach and place a stronger economic policy focus on improving living standards and boosting consumer spending," the work report said.
The report stated that domestic demand will be the primary driver and anchor of economic growth. To support consumer goods trade-in programs, 300 billion yuan ($41.2 billion) in ultra-long special treasury bonds will be issued.
China aims to promote emerging industries like quantum technology and low-altitude economy, accelerate the upgrade of traditional industries, and integrate digital technologies such as artificial intelligence (AI) with manufacturing and market strengths.
