China hikes defence budget to $209 billion, 6.8% increase

Amid a border standoff with India and its rising influence in South China Sea, China on Friday (March 5) increased its defence budget to USD 209 billion, a 6.8 per cent hike compared to the last year.

The budget hike was announced by Chinese Premier Li Keqiang at the country’s Parliament, the National People’s Congress (NPC).

Defending the increase, Zhang Yesui, spokesperson for the NPC, told media here that China’s efforts to strengthen the national defence do not target or threaten any country.

“Whether a country poses a threat to others depends on what kind of defence policy it pursues,” he said, adding that “China is committed to the path of peaceful development and adheres to a defence policy that is defensive in nature.”

This is the first time that the country’s defence budget crossed the $200 billion mark.

The budget is around a quarter of the US which is $740.5 billion for 2021.

The country on Friday also projected its annual economic growth for 2021 at 6 per cent.

India too hiked its defence budget by around 1 per cent, increasing spending to ₹3.47 trillion ($47.4 billion), compared to ₹3.43 trillion in the last fiscal.

(With inputs from agencies)