China to increase military spending by 7% in 2017

China also opposed all forms of protectionism and would “become more involved in global governance and steer economic globalization”, according to a tweet from the People’s Daily, China.

Fu Ying, spokesperson for the 12th National People’s Congress (NPC) annual session, said the increase is in line with China’s economic development and defence needs, Xinhua news agency reported.

The target, which Li said is “realistic and in keeping with economic principles”, is the lowest for more than 20 years for China.

China targeted growth of 6.5 to 7 percent last year and ultimately achieved 6.7 percent, the slowest pace in 26 years.

The country’s forex reserves dipped to about $2.998 trillion in January, down from about $3.01 trillion in December 2016, representing the seventh consecutive monthly contraction, the State Administration of Foreign Exchange data showed. China’s defense budget is expected to grow to $233 billion (219 million euros) by 2020, while the United States defense budget topped $600 billion in 2016.

Recent additions to China’s military arsenal include aircraft carriers, long-range bombers and its first overseas military base, located in Djibouti in East Africa.

The NPC is one of two major political congresses in 2017. The 19th Communist Party Congress is more significant this year because expectations are high for a leadership shake-up.

The CPPCC is neither a body of state power nor a policymaking organ.

A key focus of the sessions is eliminating poverty and creating a “moderately prosperous society”, a project President Xi Jinping has frequently cited as a national priority in a country that suffers from a gaping chasm between the rich and poor.

China has set an economic growth target of 6.5% for 2017 and unveiled plans to bring down its soaring debt levels.

This year, Premier Li Keqiang took 90 minutes to deliver the 20,000 word annual report. “People on both sides of the Taiwan Strait should keep in mind the greater interests of the nation”, and work towards the “reunification of China”. Lawmakers have started reviewing a draft amendment to the anti-unfair competition law.

Almost 3,000 NPC deputies listened to Li’s report at the meeting chaired by Zhang Dejiang, chairman of the NPC Standing Committee, along with Xi and other leaders. The draft under consideration is meant to stem unfair competition.

Recent debate about corporate tax reforms will likely continue at the NPC.

“China continues the consistent multidecade investment that has already given it what is undisputedly the second-largest defense budget in the world”, said Andrew Erickson, an expert on China’s military at the U.S. Naval War College.

The total of Chinese debt has reached nearly 250% of GDP and Capital Economics China expert Julian Evans-Pritchard warned this week that the window for Beijing to tackle the problem by recapitalising the banks and allowing state firms to fail was “closing fast”.