China intends to boost defense expenditure by 7.2% this year, as revealed in an official work report obtained by Reuters. This figure matches last year's increase but exceeds the government's economic growth projection. The decision comes amidst Beijing's adoption of a more assertive stance towards Taiwan.

Reuters reported that China has taken a firmer stance against Taiwan as it unveiled its budget figures. Premier Li Qiang's government work presentation at the opening of the National People's Congress (NPC) notably omitted any reference to "peaceful reunification."

Tensions have been steadily escalating in recent years over Taiwan and other areas across East Asia, driven by the increase in regional military developments. China asserts its claim over the democratically ruled island, contributing to the heightened tensions in the region.

According to Li Mingjiang, a defense scholar at the Rajaratnam School of International Studies (RSIS) in Singapore, Taiwan remains a significant focus of Beijing's defense expenditure despite China's economic challenges. Li emphasized that China is signaling its intention to bolster its military capabilities in the next decade, aiming to be sufficiently prepared to win a war if compelled to engage in one.

Since assuming the presidency and commander-in-chief role of China in 2013, Xi Jinping has overseen a significant increase in the country's defense budget. The budget has surged from 720 billion yuan in 2013 to 1.67 trillion yuan ($230.60 billion) in 2024.

Throughout his tenure, the rise in military expenditure has consistently outpaced the yearly target for domestic economic growth. The government work report indicates that the growth target for 2024 stands at around five percent, mirroring last year's goal.

The London-based International Institute for Strategic Studies (IISS) reported that China has increased its defense spending for the 30th consecutive year. According to research published in February 2024, the IISS noted that new military equipment purchases could constitute a significant portion of the military budget.

James Char, a security scholar at the RSIS, highlighted that despite the defense budget outpacing GDP growth, defense spending has remained around 1.3 percent of the overall GDP over the past decade. He emphasized that the country's longer-term economic prospects will ultimately determine if this level of spending can be sustained in the future.

In the government work report, China reiterated its call for "reunification" with Taiwan, dropping the previously used descriptor "peaceful." This change in language signals a firm stance on the issue of reunification.

Image source: Reuters