China's Military Spending Surge: Navigating Regional Tensions and Internal Overhaul

China is set to boost its defence spending by 7% in 2026 amid regional tensions, with focus on modernising its military by 2035. Premier Li Qiang highlighted the need to improve combat readiness. The spending increase coincides with a significant purge of high-ranking military officials.

China announced a 7% increase in defence spending for 2026, marking the lowest rate in five years yet surpassing economic growth targets and the rest of Asia. The decision is geared toward regional security challenges, including tensions over Taiwan, as China aims for military modernisation by 2035.

Premier Li Qiang outlined the military strategy at the opening of parliament's annual session, emphasizing combat readiness and advanced capabilities. This announcement comes as part of a broader GDP growth forecast of 4.5% to 5%, with President Xi Jinping holding command responsibility.

The defence budget rise, following recent purges in military leadership, is part of China's extensive military campaign. Analysts suggest the upcoming centenary of the People's Liberation Army may further escalate military activities around Taiwan amid ongoing reunification efforts.

(With inputs from agencies.)