Military Spending Is on the Rise in Asia

Over the past five years, military expenditure in Asia has climbed sharply, reflecting escalating regional tensions and global security concerns. According to the most recent SIPRI data, major military spenders in the region, such as China, India, Saudi Arabia, Japan and Taiwan, have significantly boosted their defense budgets.

China remains the region's top spender: according to SIPRI estimates, its military budget has grown by more than 20 percent between 2020 and 2024, reaching around 320 billion dollars (constant 2023 prices and exchange rates). Chinese military expenditure is driven by the country's armed forces modernization and territorial ambitions. India, facing border disputes and maritime challenges, has increased its spending by 8 percent over the same period. Prioritizing technological advancement and self-reliance, the Indian army's budget reached 84 billion dollars in 2024. Just behind, with a budget of 79 billion dollars, Saudi Arabia has increased its spending by 13 percent since 2020, amid growing instability in the Middle East.

Meanwhile, in East Asia, Japan has accelerated defense investments by over 40 percent between 2020 and 2024. Its military budget, 58 billion dollars, now surpasses that of its Western neighbor, South Korea (48 billion dollars in 2024, +4 percent from 2020), amid North Korea's missile threats and China's military assertiveness. Taiwan, under constant pressure from Beijing, saw a 37 percent increase over the last five years on record, focusing on asymmetric defense capabilities.