The Chinese government revealed that its defense budget proposal for 2026, which will be presented at the National People's Congress (NPC) starting on the 5th, is set to increase by 7.0% to 1.9 trillion yuan (approximately 43 trillion yen), marking the largest defense budget in history. This increase comes despite an expected slowdown in GDP growth to around 5.0%, raising concerns about how China can maintain such a high growth rate in its military spending amidst broader economic challenges.

China's defense budget is now the second largest globally, following the United States, which has a budget of approximately 141 trillion yen (900.6 billion dollars). However, the lack of transparency regarding the breakdown of this budget has led to unease among neighboring countries, including Japan, regarding China's military intentions. The Chinese government has not disclosed how these funds will be allocated, leaving many unanswered questions about the focus areas of their military expansion.

According to a report by the Stockholm International Peace Research Institute (SIPRI), global military spending has increased for the 10th consecutive year, totaling approximately 42.7 trillion yen (2.718 trillion dollars) in 2024, largely due to increased military expenditures in Europe, including Russia. The 9.4% increase in military costs marks the largest rate of growth in the post-Cold War era, further highlighting the escalating arms race and security concerns on an international scale that may be exacerbated by rising tensions in various regions.