Beijing's increase in military spending reflects an overall slowdown in the economy but keeps pace with the fast-changing trend in defence spending across the world.
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The Chinese government says it will keep its defence budget by 7.2% this year as part of its ongoing effort to develop a more expansive and advanced military that observers believe is aimed at challenging the US military might in Asia and establishing its territorial claims.
The budget plan, which comes to roughly $245 billion (€228.7bn), was presented on Wednesday at the annual legislature meeting of the National People's Congress.
The increase, the same as last year and far below the double-digit percentage figures of previous years, reflects an overall slowdown in the economy but keeps pace with the trend of planned increases in defence spending across the world.
Tensions with the US, as well as Taiwan, Japan and other neighbours that have claims to the vital South China Sea, are believed to be contributing to Beijing's development of advanced military technologies, including nuclear weapons and aircraft carriers.
While the People's Liberation Army, the military wing of the ruling Communist Party, has established bases on man-made islands in the South China Sea, geopolitical analysts say China's primary goal is to establish dominance over Taiwan, a democratic self-governing territory that Beijing claims as its own.
Premier Li Qiang told the almost 3,000 party supporters at the Congress on Wednesday that while China still favours a peaceful resolution to the Taiwan problem, it "resolutely opposes" those advocating for Taiwan's formal independence and their international backers.
“We will firmly advance the cause of China’s reunification and work with our fellow Chinese in Taiwan to realise the glorious cause of the rejuvenation of the Chinese nation,” Li said.
China has the largest navy in the world, and its military spending is second only to the US.
Meanwhile, Taiwan, which has strong ties to the US, has said it is planning to boost military spending in the face of the “rapidly changing international situation and the escalating threats from adversaries.”