China's Strategic Military Spending Surge in 2026

China's 2026 defense budget will increase by 7%, slightly below the 2025 hike, continuing a decade-long trend. This reflects President Xi Jinping's aim for military modernization by 2035. The spending rise is watched amid regional tensions and China's internal military corruption investigations.

China is set to increase its defense spending by 7% in 2026, according to an official government report obtained by Reuters. The rise is marginally below the 7.2% increase from 2025 but aligns with a decade-long trend of rising military budgets.

Analysts and regional military attaches are monitoring this budget closely as China pushes forward with its military modernization, bolstering deployments across East Asia amid heightened tensions. This development aligns with President Xi Jinping's objective to complete military modernization by 2035, integrating advanced missiles, ships, submarines, and surveillance technologies into its arsenal.

The budget announcement comes against the backdrop of a sweeping anti-corruption campaign within China's military, following the highest-profile purge in decades. Among those entangled are top generals, including Zhang Youxia, under investigation, and He Weidong, expelled last year. The International Institute of Strategic Studies noted that China's defense spending is far outpacing other Asian countries, capturing nearly 44% of Asia's military expenditures in 2025.

(With inputs from agencies.)