Editorial | China shows restraint with a moderate rise in its defence budget

At a time when the United States perceives China as its biggest rival and threat and plans to increase its regional firepower, Beijing is responding with noticeable restraint. The defence budget Premier Li Keqiang unveiled last week projected moderate spending 6.8 per cent higher than for the previous year, the sixth consecutive annual single-digit increase.

For a country anticipating at least 6.0 per cent economic growth at a time when much of the world is still struggling with the Covid-19 pandemic, the proposed military expenditure speaks of moderation and caution. If Washington’s strategy is to push China into a financially debilitating arms race, it is bound to be disappointed.

China’s expected military expenditure is slightly more than the 6.6 per cent increase last year and amounts to 1.35 trillion yuan (US$208.47 billion), about 29 per cent of the US’ spending. Li pledged that efforts to strengthen the People’s Liberation Army would continue quickly to counter what were perceived as multiple security threats.

Reform, science and technology and the training of armed forces personnel to enhance preparedness and capability were laid out as the way to ensure security and protect sovereignty. Concerns were not articulated, but border clashes with India and stepped-up American naval patrols in the South China Sea and around Taiwan have raised Beijing’s ire.

US President Joe Biden is eager to strengthen military alliances in Asia, deepen interoperability and attract new partners, its main objective being to counter China’s rise. The US’ last defence budget amounted to US$714 billion and is expected to increase to US$733 billion in the coming financial year.