China Ups Defense Spending by 7.2% in 2023

China announced plans to bolster defense spending by 7.2% in 2023, as Premier Li Keqiang called for the armed forces to enlarge combat preparedness.

The $224 billion in military spending rise is seen by China's neighbors and in Washington as a barometer of how aggressively the country will beef up its military.

This hike marks the eighth consecutive single-digit increase. It comes at a time when Beijing is nervous about challenges on fronts ranging from Taiwan to the US naval and air missions in the disputed South China Sea near Chinese-occupied islands.

In his work report to the annual session of parliament, Li said military operations, capacity building, and combat preparedness should be "well-coordinated in fulfilling major tasks".

"Our armed forces, with a focus on the goals for the centenary of the People's Liberation Army in 2027, should work to carry out military operations, boost combat preparedness and enhance military capabilities," he said in the state-of-the-nation address to the largely rubber-stamp legislature.

Holding the world's largest military in terms of personnel, China is also adding a slew of new hardware, including aircraft carriers and stealth fighters.