Beijing, 5 March 2025 (dpa/MIA) - China plans to spend 7.2% more on its military this year, according to the draft budget presented at the National People's Congress on Wednesday, with Beijing also announcing that the year's economic growth target will again be 5%.

The increase in the defence budget to 1.78 trillion yuan (around $245 billion) was revealed at the opening of the congress in Beijing.

The government had increased its military budget by the same percentage last year.

China has the second largest defence budget in the world, after the United States.

President Xi Jinping has pushed a thorough modernization of the military since taking office in 2013, with the aim of creating a "world-class" military by 2049 to protect its core interests.

Beijing's decision to up its defence spending comes amid tensions with Taiwan and China's expansive - and disputed - territorial claims in the South China Sea.

Beijing considers the democratic island in the Pacific to be part of its territory, but Taiwan has had an independent government since 1949.

Xi has repeatedly made it clear that he does not want to postpone unification indefinitely – and would accomplish this if necessary, by force. Most recently, Beijing increased military pressure on Taiwan with extensive naval manoeuvres off its coast. Chinese fighter jets also repeatedly enter Taiwanese airspace.

Chinese forces also regularly clash with the Philippines over territorial claims in the South China Sea.

Recent Chinese live-fire exercises in international waters near Australia and New Zealand have caused concern in the region.

At the start of the National People's Congress, the Chinese government also announced that it would keep its economic growth target at about 5% for a third straight year.

The goal is considered ambitious in view of Beijing's current disputes with international trading partners including the United States and sluggish consumption figures domestically.

While critics doubt the accuracy of Chinese economic data, the growth target is nevertheless regarded as an important indicator of the government's economic policy course.

This year's annual meeting of the unelected parliament, with its roughly 3,000 delegates, is scheduled to last for seven days.

Following the opening, delegates are expected to discuss further reports in the coming days, which are to be voted on during the last day of the session.

High-ranking ministers are expected at press conferences to make statements about various subjects, including Chinese diplomacy.

Experts do not anticipate major surprises at this year's congress. Beijing is likely to stick to continuity in its policies.

Photo: EPA