China’s substantial investment in its armed forces could increasingly enhance its ability to expand its influence across the Indo-Pacific region, if not beyond On 5 March 2025, the Chinese government announced its national defence budget at US$ 249 billion (CNY 1.81 trillion) for the year. As the second-largest defence budget worldwide, it marks an annual increase of 7.2 percent but remains below 1.5 percent of China’s GDP.
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