China Hikes Defense Budget 7% to $277B for Modernization Amid Purges, Economic Slowdown

• China increases its defense budget by 7% to $277 billion for FY 2026, aiming to accelerate military modernization to catch up with the US.
• The announcement was made during the National People’s Congress, where Premier Li Qiang also proposed lowering the GDP target to 4.5-5% due to economic challenges.
• China's defense spending is over three times India's budget, and its figures are met with skepticism given rapid military expansion and advanced projects.
• Extensive purges by President Xi Jinping continue within the military, with high-ranking officials like Gen Zhang Youxia under investigation for corruption.
• Beijing reiterates its 'one-China principle' on Taiwan, vowing to 'resolutely crack down on separatist activities,' a stronger stance than last year.