China increases defense budget amid US concern over Taiwan conflict

China has increased its 2023 defense budget by 7.2%. In U.S. dollars, China’s defense budget is equivalent to $230 billion, marking an increase of about $16 billion over its 2022 defense budget. Similarly, the U.S. increased its 2023 defense budget, but its defense budget totals roughly $800 billion.

China’s increase in military spending comes as tensions continue to rise between the China and the U.S. CIA Director William Burns has predicted China will invade Taiwan within four years. The U.S. has openly opposed the China-Taiwan conflict.

“We know as a matter of intelligence [Xi] has instructed the People’s Liberation Army to be ready by 2027 to conduct a successful invasion,” Burns said on Feb. 3. “Now, that does not mean that he’s decided to conduct an invasion in 2027, or any other year, but it’s a reminder of the seriousness of his focus and his ambition.”

The U.S. has also sent China a warning related to the war in Ukraine. U.S. officials told the Chinese government not to send weapons to Russia’s military. Last week, Reuters reported the U.S. was asking other allies about potential sanctions on China if the country supplies Russia with lethal weapons.

Funneling more money into its defense budget represents a challenge for China. The 7.2% increase to China’s defense budget comes as China’s overall economic growth target is 5% for the year, one of its lowest targets in decades. China posted an economic growth rate of 3% last year, one of the weakest growth figures in decades. These numbers indicate China’s defense budget is growing significantly faster than its economy. Military investments have taken a new priority for the Chinese Communist Party.