China has announced a trillion yuan military budget for the coming year at the annual National People's Congress. The move is "to make up for low military spending in the past," according to an official.
Chinese Prime Minister Li Keqiang on Monday announced an 8.1 percent increase in defense spending in 2018, marking a sharp increase to the military budget compared to the previous two years.
NPC spokesperson Zhang Yesui said that despite the increase, defense spending as a share of GDP is lower in China when compared to other global players, reported state-owned Xinhua news agency.
While China's military budget is the second-largest in the world after the US, defense spending stands at roughly 2 percent of GDP. That is significantly lower than Russia and the US, which spend 5.3 percent and 3.3 percent of GDP on defense respectively.
"A large part of the growth of the defense budget is to make up for the low military spending in the past and is mainly used to upgrade equipment and improve the welfare of servicemen and women and the living and training conditions of grassroots troops," Zhang said.
However, with the rise of China as a more assertive actor in the international community, analysts have questioned its military ambitions and cast doubt on its official defense spending figures.
"Although China provides official estimates of defense spending each year, outside estimates of China's defense budget are often significantly higher than Beijing's official numbers," said a report published by the Washington-based Center for Strategic and International Studies earlier this month.
"China provides limited information on the distribution of its military spending, which obscures spending patterns that may indicate … how China might be responding to perceived threats and where China is investing in new technologies."