The increase is slightly higher than last year’s 7.1 percent. The increase in China’s military budget is being followed closely by the international community due in particular to the country’s strained relationship with the United States. China’s defense budget is the second largest in the world, only the US spends the most at $800 billion (€750 billion).
Above economic growth
The budget increase exceeds the expected growth of the economy. China is aiming for economic growth of “around” five percent in 2023, one of the lowest growth targets in decades. For last year, the country had forecast a growth of 5.5%, but the economy only grew by 3% due to the ongoing corona virus.
At the start of Sunday’s People’s Congress meeting, outgoing Prime Minister Li Keqiang announced plans to create 12 million jobs in cities to reduce unemployment. He also said that China should become self-sufficient in science and technology and that industry should take the lead in innovation.
Nearly 3,000 Communist Party of China (CPC) delegates will be in the Chinese capital Beijing for a week starting Sunday for the annual meeting of the People’s Congress.