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March 7, 2022updated 23 Mar 2022 4:40am

China plans to increase defence budget by 7.1% in 2022

The proposed increase is said to be the largest since 2019.

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What is driving and impacting South Korea’s Defense Market?

South Korea’s defense budget is currently valued at $48.3 billion after experiencing impressive and robust annual growth of 10.5% in 2022. Over the forecast period, South Korean defense expenditure is anticipated to register a strong CAGR of 6.3% over 2023-27 and reach $66.2 billion by 2027. The country’s acquisition budget, which includes research and development (R&D) funding, is also anticipated to register significant growth, projected to reach $21.6 billion in 2027, seeing significant rise from the anticipated $17 billion in 2023. South Korean defense spending is continuing to be fueled by the country’s hostile relationship with North Korea, coupled with the need to develop its own domestic industry. If you want to strategize successfully off this growing market, it is important to be fully informed. This report’s key findings include:
  • Details on the defense budget
  • Drivers of defense spending
  • Key trends impacting the market
Download the full report so you can formulate winning strategies for the road ahead.
by GlobalData
Enter your details here to receive your free Report.

China has proposed to increase defence spending by 7.1%, to CNY1.45tn ($230bn) in 2022, in a bid to safeguard its sovereignty, security, and development interests.

The proposed increase was announced by Chinese Premier Li Keqiang while delivering the draft budget at the opening of the annual session of the National People’s Congress (NPC), the top legislature of the country.

If approved, the rise in defence spending will mark the largest increase since 2019, reported Reuters. Last year, the figure was 6.8%.

According to the news agency, Premier Li said that the government will focus on modernising its military’s logistics and developing modern weaponry.

He was quoted by Reuters as saying: “We will continue the reform of national defence, and the military, and step up innovations in defence science and technology.

“Government at all levels must give strong support to the development of national defence, and the armed forces, so unity between the military and government, and between the military and the people, will remain rock solid.”

Global Times, an English newspaper that runs under the auspices of China’s ruling Communist Party, said that the defence budget increase comes at a time of the ‘unstable security situation’ around the country.

The rise also comes at a time when the ongoing crisis in Ukraine pushed several countries to increase defence expenditure.

Denmark recently said that it will increase its defence budget to 2% of GDP, by 2033.

Germany also announced that it will increase military expenditure to more than 2% of GDP while the Polish Government is also working to boost defence spending more than previously planned.

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Free Report
img

What is driving and impacting South Korea’s Defense Market?

South Korea’s defense budget is currently valued at $48.3 billion after experiencing impressive and robust annual growth of 10.5% in 2022. Over the forecast period, South Korean defense expenditure is anticipated to register a strong CAGR of 6.3% over 2023-27 and reach $66.2 billion by 2027. The country’s acquisition budget, which includes research and development (R&D) funding, is also anticipated to register significant growth, projected to reach $21.6 billion in 2027, seeing significant rise from the anticipated $17 billion in 2023. South Korean defense spending is continuing to be fueled by the country’s hostile relationship with North Korea, coupled with the need to develop its own domestic industry. If you want to strategize successfully off this growing market, it is important to be fully informed. This report’s key findings include:
  • Details on the defense budget
  • Drivers of defense spending
  • Key trends impacting the market
Download the full report so you can formulate winning strategies for the road ahead.
by GlobalData
Enter your details here to receive your free Report.

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