China's sustained military budget increases, exceeding 7% for the third straight year, are causing growing unease amongst regional powers, especially India. While China's defence spending remains significantly less than that of the United States, it has tripled India's budget, creating a power dynamic that impacts the Indo-Pacific balance.
The year 2027, marking the centenary of the People's Liberation Army (PLA), is viewed with heightened anxiety. US Indo-Pacific Command assessments indicate the potential for President Xi Jinping to use military force in an attempt to unify Taiwan with mainland China. This potential looms large within the strategic outlooks of the region.
Modernization and Regional Ambitions
China's focus on rapidly modernizing both nuclear and conventional forces signals a clear ambition to become the preeminent military power in the Indo-Pacific. This includes building aircraft carrier task forces to project its influence into the Indian Ocean. Such moves could lead to a response from Japan, potentially pushing it to reassess its historically pacifist stance.Furthermore, China is likely to solidify its dominance of the contested South China Sea through missiles and maritime power. This development directly challenges the interests of numerous Southeast Asian nations, as well as other major powers such as the United States.
Implications for India and the Region
India, embroiled in a tense four-year standoff with China along the eastern Ladakh Line of Actual Control (LAC), could face mounting pressure from the PLA in the coming years. This border situation directly highlights the growing military power imbalance between the two nations.China's behavior and trajectory necessitate robust cooperation between major stakeholders in the Indo-Pacific. Countries such as India, Japan, Australia, and those within ASEAN must work together, both bilaterally and multilaterally (such as through the Quadrilateral Security Dialogue), to address the evolving situation and deter potential Chinese aggression.