China on Thursday hiked its defence budget to USD 275 billion, about USD 25 billion more than last year as it ramped the modernisation of armed forces to catch up with the US military.Roughly 1.9 trillion yuan (about USD 275 billion) will be allocated to national defence, Chinese Premier Li Qiang announced in his work report presented to the National People’s Congress (NPC) on Thursday.The report said China’s defence spending remained comparatively modest across key relative indicators, including its share of GDP, per capita defence expenditure, and defence expenditure per military personnel.Last year China announced a 7.2-per cent increase for its national defence budget to USD 249 billion for 2025 which is a USD 17 billion rise compared to 2024.China’s defence spending, only second to that of the US, has been growing over the years putting enormous pressure on India and other neighbouring countries to scale up their defence budgets in the face of economic challenges.In 2024, China increased its defence budget by 7.2 per cent to about USD 232 billion (1.67 trillion yuan) — over three times that of India — as it continues with the massive modernisation of all its armed forces.China’s defence budget figures are viewed with scepticism in the light of massive military modernisation, including building aircraft carriers, rapid construction of advanced naval ships and modern stealth aircraft being carried out at a feverish pitch by the Chinese military.