China raises military budget by 7pc amid slower economic growth

China will increase its defence budget by about 7 per cent this year, the smallest boost since 2010, a move which analysts said reflected the nation’s continuing economic slowdown.

The announcement of the figure on Saturday by Fu Ying, spokeswoman of the National People’s Congress, came amid rising calls by military officers for defence spending to be boosted by at least 10 per cent as China seeks to improve the fighting capability of the People’s Liberation Army.

Source said the smaller ­increase could affect the compensation for officers made redundant as the leadership reduces troop sizes to prioritise advanced weaponry capabilities. Beijing ­intends to cut about 300,000 personnel from the current level of 2.3 million. Veterans have been staging protests over benefit levels in Beijing in recent months.

Fu told a press conference ahead of the opening of China’s annual legislature session that defence spending would remain at about 1.3 per cent of gross domestic product.

She said the PLA faced daunting tasks in protecting China’s territorial sovereignty and maintaining regional security, and preventing foreign forces from intervening in the South China Sea disputes.