Plus 7.2 percent

China’s National People’s Congress: more money for defense

Defense spending is increasing significantly by 7.2 percent to around 1.78 trillion yuan (currently more than 225 billion euros).

(Bild: EPA)

Green light for the Chinese government's plans for 2025: the National People's Congress confirmed the Communist Party's work reports and budget plans almost unanimously on Tuesday. Beijing wants to spend more money on defense and the ailing real estate sector, for example.

China's National People's Congress has approved the government's plans: By a large majority, the approximately 2900 delegates of the non-freely elected parliament in the Great Hall of the People in Beijing confirmed the plans on Tuesday. Specifically, it was about work reports and budget plans of the Communist Party - which dominates everything in the one-party dictatorship.

Population to consume more
For the first time in decades, the budget deficit will be increased to four percent of gross domestic product. Beijing wants to spend money to support the ailing real estate sector, provide banks with capital and encourage people to consume more. This should help to achieve the self-imposed economic growth target of "around five percent".

The government also wants to use the money to strengthen the area of artificial intelligence and create more education, care and nursing services as well as jobs. 

More money for defense
In addition, defense spending will increase significantly by 7.2 percent to around 1.78 trillion yuan (currently more than 225 billion euros). China is currently in a trade war with the USA. A week ago, US President Donald Trump increased the special tariffs on imports from China from ten to 20 percent. China responded by also introducing tariffs and trade restrictions.