China's Defense Budget Up 7.2 Percent In 2025

JAKARTA - China's defense budget rose 7.2 percent to 1.78 trillion yuan (around IDR 4.05 quadrillion) in 2025.

"We will maintain national security and social stability. We will fully implement a holistic approach to national security, improve institutions and mechanisms to maintain national security and modernize China's national security system and capacity," Chinese Prime Minister (PM) Li Qiang said at the opening of the China National People's Congress (NPC) session at the People's Hall, Beijing, Wednesday, March 5.

In the 2024 Central and Regional Government Performance and Budget Reports as well as the 2025 Central and Regional Government Budget Draft, it is stated that China's spending on national defense reached 1.78 trillion yuan, an increase of 7.2 percent compared to 2024 which amounted to 1.665 trillion yuan (approximately IDR 3.77 quadrillion).

"We will enforce a system to ensure social stability, strengthen public security governance and strengthen infrastructure and emergency response capabilities at the basic level," added PM Li.

PM Li conveyed this in front of 2,879 NPC members and officials of the Chinese Communist Party (PKC).

The NPC (National People's Congress) session is part of a series of "Two Sessions" parliamentary sessions during March 4-11, 2025 which aims to review the work reports of the central government in 2024 and establish the Chinese government's work plan by 2025.

"We will improve military training and combat readiness, accelerate the development of new combat capabilities, and build a modern military framework with Chinese characteristics so that it can firmly safeguard China's sovereignty, security and development interests," said PM Li.

PM Li also said the government would complete the tasks set out in its 14th Five-Year Development Plan to strengthen the military, intensify the implementation of large defense-related projects and move faster to develop a network information system.

"We will make coordinated efforts to promote military civil reform, perfect the framework and governance of defense-related science, technology and industry and improve work mechanisms to develop national strategies and integrated strategic capabilities," added PM Li.

Governments at each level, said PM Li, will provide strong support for the development of national defense and armed forces and refine mechanisms to strengthen reciprocal support between the civilian and military sectors.

Overall, China's central government budget in 2025 is projected to increase by 6.9 percent to 4.35 trillion yuan (around Rp9.8 quadrilun).

The central government's main expenditure post is: 64.506 billion yuan (around Rp. 146.4 trillion) for diplomatic efforts or an increase of 8.4 percent; 1.78 trillion yuan (around Rp. 4 quadrillion) for national defense or an increase of 7.2 percent; 242.828 billion yuan (around Rp. 551 trillion) for domestic security or an increase of 7.3 percent.

Furthermore, amounting to 174.443 billion yuan (around Rp395 trillion) for education or an increase of 5 percent; 398.119 billion yuan (around Rp903 trillion) for science and technology or an increase of 10 percent.

A total of 131.66 billion yuan (around Rp 298 trillion) for grain reserves, cooking oil and other foodstuffs or an increase of 6.1 percent; and 834.55 billion yuan (around Rp1.88 quadrillion) for debt interest payments or an increase of 10.2 percent.