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China’s 6.8 per cent rise in military spending expected to stoke unease in region

  • Defence funding will reach US$209 billion in 2021, and Premier Li Keqiang says PLA will get a training boost
  • Analysts say it reflects strong economic recovery and increase will be concerning for neighbours

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Military delegates leave the opening session of the National People’s Congress in Beijing on Friday. Photo: AP
The gap between China’s military and its regional counterparts is widening, with Beijing announcing a 6.8 per cent rise in defence spending on Friday that observers say will stoke concerns among its neighbours.
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While the budget increase is just 0.2 of a percentage point more than last year’s growth, it is the biggest expansion in military spending in Asia.

The finance ministry said funding for the military would reach 1.355 trillion yuan (US$209 billion) in 2021, while Premier Li Keqiang told the opening session of the national legislature that the People’s Liberation Army would get a training boost to improve combat readiness.
It comes as China is embroiled in multiple disputes, including along its Himalayan border with India, and with the United States and other nations in the South China Sea and the Taiwan Strait.

The defence ministry said earlier that one-third of the budget would be spent on construction projects for military exercises, with the rest for weapons, equipment and salaries.

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It also comes as many countries are still grappling with the pandemic, while China was the only major economy to report positive growth in 2020 after it largely brought the coronavirus under control.
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