Beijing officially announced its national defense spending plan for 2026, totaling 1.91 trillion yuan, or approximately $277 billion. During the 14th National People's Congress session, it was noted that this amounts to only 1.3% of the country's GDP, formally placing China second in the world after the United States. This was reported by Defense Express, writes UNN.
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The Pentagon expresses serious skepticism regarding the transparency of Chinese reports, claiming that Beijing's actual military expenditures could be 40-90% higher.
We have observed a steady increase in defense spending since 2023. China's actual military expenditures significantly exceed the officially declared 1.3% of GDP, as a significant portion of funds is dispersed among other budget items related to technological development and infrastructure.
According to estimates by the American defense agency, actual expenditures could reach $526 billion, accounting for up to 2.48% of GDP.
The bulk of the hidden funds is likely directed towards modernizing the nuclear arsenal, developing aerospace technologies, and supporting private-public military initiatives that are not reflected in the overall defense budget.
Change in the strategy for the development of the armed forces
According to CSIS forecasts, China continues to qualitatively transform its military, moving away from the tactic of "quantitative superiority." The modernization program envisages a 40% reduction in ground forces in favor of strengthening the Navy, missile weaponry, and aviation.
It is expected that by 2030, China's nuclear arsenal will double, exceeding 1,000 warheads, accompanied by the active deployment of new DF-41 intercontinental ballistic missiles.