China said on Thursday that its defense budget, the world's second-largest after the United States, will grow by seven percent in 2026, in line with expectations but slightly below last year's.

Beijing plans to spend 1.9096 trillion yuan ($276.8 billion) on defense – about three times less than the US military budget.

The increase in military spending for the year was announced in a budget report from the finance ministry that was published on the sidelines of the annual "Two Sessions" political conclave.

This marks a degree of continuity as Beijing pursues a broad anti-corruption purge of the People's Liberation Army (PLA) that included the ouster of senior general Zhang Youxia in January.

Analysts told AFP the budget will fund military pay increases, training, exercises around Taiwan, cyber warfare capabilities and purchases of advanced equipment, among other things.

China has maintained a steady increase in military spending of around seven to eight percent each year since 2016.

The United States is the world's largest military spender, spending $997 billion in 2024 compared to China's $314 billion, according to the Stockholm International Peace Research Institute (SIPRI).

China claims that its defense policy is aimed only at defending its territory, which it says includes self-ruled Taiwan.

It has only one military base abroad, in Djibouti, compared to several hundred maintained by the United States.

However, China's military buildup is fueling an arms race in Asia and pushing some countries, especially those with territorial disputes with China, to move closer to Washington.