China's 2026 defense budget: Low ratio, clear purpose, peaceful intent

Editor's note: Li Yun, a special commentator on current affairs for CGTN, is an associate research fellow at the Institute of Foreign Military Studies, Academy of Military Sciences. The article reflects the author's opinions and not necessarily the views of CGTN.

China recently announced its 2026 defense budget of 1.9 trillion Chinese yuan (about $275 billion). While this marks a 7% increase and the 11th consecutive year of single-digit growth, China's defense spending as a percentage of GDP has long remained below 1.5%. For example, the 2026 defense budget represents approximately 1.36% of the 2025 GDP, significantly lower than the world average of approximately 2.5%, and far lower than major countries like the United States (approximately 3.5%-4%).

As one of the world's major economies with one of the lowest defense spending-to-GDP ratios, China's "defensive" and "moderate" characteristics in its defense development are evident. This reflects China's policy on the relationship between "national prosperity" and "military strength": prioritizing economic development, with national defense and military modernization progressing simultaneously on this foundation, and the fundamental goal being the maintenance of peace, not participation in an arms race.

The current reasonable increase in defense spending is an objective necessity to address the evolving national security environment. China faces complex and diverse security challenges and threats, and the task of safeguarding national sovereignty, security, and development interests is arduous. Against this backdrop, appropriately increasing defense spending, accelerating the modernization of national defense and the armed forces, and enhancing the ability to defend national sovereignty, security, and development interests are the legitimate rights and inevitable choices of a sovereign state. This increase in spending is essentially aimed at strengthening national security safeguards, effectively deterring conflict, and ensuring that the process of peaceful development is not interrupted.

China's defense spending focuses on enhancing its ability to safeguard peace. Funding is primarily directed towards several key areas: first, accelerating the modernization of national defense and the armed forces, including the research and development (R&D) and upgrading of modern weaponry; second, deepening national defense and military reforms, and improving the level of realistic military training and joint operational capabilities; third, improving the living conditions of officers and soldiers, and attracting outstanding personnel; and fourth, fulfilling international responsibilities and obligations, including continued participation in UN peacekeeping operations, escort missions in the Gulf of Aden, and providing international humanitarian assistance.

All of these military expenditures adhere to a defensive, rather than offensive, defense policy. China's solemn commitment to never seek hegemony and never expand is consistently reflected in the scale, proportion, and specific practices of its defense spending.

A nation's defense policy is best judged by its actual actions and historical record. Since its founding in 1949, the People's Republic of China has almost never initiated conflict, pursuing a path of peaceful development. In the context of multiple challenges facing the world today, a China that maintains strategic composure and adheres to self-defense is a positive factor in safeguarding world peace.

China's stance on national defense has been further confirmed by the release of its 2026 defense budget. Its consistently low GDP share and clearly focused defensive applications together outlined a restrained path of defense development with Chinese characteristics. This path serves the overall goal of national peaceful development and has conveyed that China will always be a staunch defender of international peace.

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