China plans defense budget increase of 7% during 2017

BEIJING - China will raise its defense budget by about 7 percent this year, a government spokeswoman said Saturday, continuing a trend of lowered growth amid a slowing economy despite regional tensions over the South China Sea and other issues.

Total defense spending would account for about 1.3 percent of projected gross domestic project in 2017, said Fu Ying, spokeswoman for the legislature. She was speaking at a news conference on the eve of the opening of the body’s annual session.

The precise figure will be provided by Premier Li Keqiang in his address to the National People’s Congress on Sunday morning.

Fu reiterated China’s contention that its military was purely for defense and constituted a force for stability in Asia.

“We advocate dialogue for peaceful resolutions, while at the same time, we need to possess the ability to defend our sovereignty and interests,” Fu said.

“The strengthening of Chinese capabilities benefits the preservation of peace and security in this region, and not the opposite.”

Depending on the final figure, this year’s budget could mark the third consecutive year of declines in defense spending growth rates, even while some outside observers say those figures don’t account for all military spending. The budget grew by 7.6 percent last year and 10.1 percent in 2015.

That trend reflects “the new normal, an acknowledgement that Chinese growth is plateauing as a whole,” said Alexander Neill, a senior fellow for AsiaPacific security for the International Institute for Strategic Studies based in Singapore.

While the slowing economy may preclude a spending spree similar to past years, when growth rose by double-digit percentages each year, there’s no doubt China will continue to add high-tech weaponry according to its long-term strategy, Neill said.

Seeking a more streamlined fighting force, China plans to complete the cutting of 300,000 military personnel by the end of the year, shifting the emphasis away from the land forces and toward the navy, air and rocket units.