China Continues To Increase Its Military Budget Even Though The Economy Is Not Yet Conducive

China Continues To Increase Its Military Budget Even Though The Economy Is Not Yet Conducive

China continues to increase its military budget even though the economy is not yet conducive. Secretly the eyes of the world are watching the annual national people’s congress or NPC in China which starts Tuesday 5 March 2024 in Beijing at this Congress China set a growth target of around 5% for 2024.

In fact, this 5% target is not much different from international funds’ projections or China’s projected growth in 2024 of 4.6%, and decreasing to 3.5% in 2028. This year’s uneven growth shows a deep structural imbalance in China. China started the year with a stock market slump and deflation at levels not seen since the Global financial crisis of 2008 to 2009.

The property crisis and local government debt problems continue. If the government does not move quickly, experts fear China’s economic miracle will fade quickly. The government is urged to carry out pro-market reforms and increase population income for the manufacturing sector.

China will lift all restrictions on foreign investment. China will also formulate development plans for Quantum computing, big data and artificial intelligence. As efforts to achieve technological self-sufficiency, chief economist at Shanghai securities Hu Yusiau criticized China’s policy focus on manufacturing. The reason would be exacerbating industrial overcapacity deepening deflation and exacerbating trade tensions with the West. At last year’s NPC Si was appointed for a third term and confirmed his power as China’s leader. The strongest after mMau Jedong.

Analysts say the government is caught between sweeping reforms to boost economic growth and efforts to strengthen state power and national security. Research results from the International Institute for Strategic Studies show that China has increased its defense budget for 30 consecutive years. Raja Ratnam School Limingjang international studies said that China wants to develop its military to the point where it is ready to win a war, if it has no other choice but to fight. Since Si Jinping became president and commander-in-chief of the military, the defense budget has ballooned to 1.67 trillion Yuan or 230.6 billion US dollars, up 7% from last year.

The percentage increase in military spending consistently exceeded annual domestic economic growth targets during Si Jinping’s tenure. China’s defense budget is closely monitored and worries neighboring countries and the United States. Purchasing new equipment will likely take up a large portion of the budget as the military seeks to meet China’s goal of full modernization by 2035.