Monday, August 8, 2022

China hikes military budget to 7.1%: Sets lowest annual GDP target in decades

China defense budget : As China continues its military aggressiveness towards its neighbors like Taiwan, it has decided to increase its military budget by 7.1 percent in 2022. China defense budget which is considered the second largest in the world after US, is witnessing a constant increase in its spending on military. Last year, China had announced a rise of 6.8 per cent in its military spending and this year, it has raised it to 7.1 percent.

The budget shared by the Chinese government reveals that about $230 billion have been allocated to national defence and its annual GDP growth target is projected to be of 5.5 percent. Chinese Premier Li Keqiang, in his speech at the annual session of China’s parliament, said that Beijing would enhance military training and combat readiness, stay firm and flexible in carrying out military struggle and safeguard China’s sovereignty, security and development interests.

Several experts are of the firm belief that China’s actual military spending may even be higher than what is projected. Earlier last month, Chinese Xi Jinping had urged the military to conduct combat oriented tests and increase the capacity for intelligent information based warfare.

While China continues to expand and modernise its military, it is heading towards a slower economic growth and a downturn in its vast property sector.  Speaking about China’s spiraling economy, Li had added that China must make economic stability a top priority, as the world economic recovery lacks drive and commodity prices remain high, being prone to fluctuation. He emphasised that all of this is making China’s external environment increasingly volatile, grave and uncertain.

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