China has unveiled a strategic defense budget of 1.91 trillion yuan ($278 billion) for fiscal year 2026, representing a measured 7% year-on-year increase. Senior Colonel Zhang Xiaogang, spokesperson for the People’s Liberation Army and People’s Armed Police Force delegation, articulated the rationale behind this expenditure during the fourth session of the 14th National People’s Congress.
The budget allocation reflects China’s commitment to synchronized development of national defense capabilities and economic prosperity. Colonel Zhang emphasized that the funding determination follows comprehensive evaluation of multiple strategic factors, including national security requirements, overall development objectives, and the synchronization between military modernization and China’s broader modernization agenda.
According to defense officials, the increased expenditure will primarily fuel three key modernization initiatives: advancing integrated military development through mechanization, informatization, and smart technology implementation; enhancing joint operational capabilities and traditional combat forces; and accelerating the systematic development of new-domain forces with combat-ready capabilities.
The budgetary expansion will also facilitate critical investments in advanced weaponry development, defense technology innovation, modern logistics infrastructure, and combat-oriented training programs. Additionally, the military plans to implement comprehensive reforms in budget management systems, establishing dynamic balance mechanisms between funding supply and demand while strengthening full-cycle financial oversight and performance evaluation.
Colonel Zhang characterized these developments as essential strategic underpinnings for Chinese modernization, noting that the approach simultaneously enhances both defense capabilities and economic strengths while safeguarding national sovereignty and security interests.