China's Defense Budget Boost Amid Economic Challenges

China increases its defense budget by over 10% to USD 275 billion to accelerate military modernization, despite lowering its GDP target due to domestic and international economic pressures. This move follows a 7.2% hike last year, intensifying regional defense competition.

In a strategic move to advance its military capabilities, China announced a considerable increase in its defense budget on Thursday, raising it by over 10% to USD 275 billion. This budget expansion is aimed at modernizing the armed forces to rival the United States in military prowess.

The allocation, disclosed by Chinese Premier Li Qiang in a report to the National People's Congress, signifies China's continued commitment to defense investments despite economic constraints. With this increase, China retains its position as the second-largest defense spender globally, following the United States.

Concurrently, China adjusted its GDP growth target to between 4.5% and 5%, acknowledging economic challenges such as trade tensions, a cooling property market, and rising unemployment, marking the first such adjustment in three years.

(With inputs from agencies.)