As the Chinese National People’s Congress met in Beijing this week, one announcement was the planned defense budget for 2016. Contrary to some rumors, China’s defense budget will rise by “only” 7.6 percent in 2016, only the second time in 20 years that the growth has been in single digits. At 954 billion renminbi, or approximately $147 billion, China’s defense budget is second only to that of the United States.
The Chinese defense budget figure has long been a source of controversy, as it is believed to understate actual Chinese defense spending. Part of this is likely due to different accounting methods, as well as a tendency to limit transparency.
Nonetheless, it is clear that China is going to continue to allocate substantial resources to its defense modernization efforts, even as the Chinese economy shows signs of slowing.
The Chinese defense budget announcement comes on the heels of announcements of three major reform pathways.
