China announced Wednesday that it will be increasing defense spending by 7.2%, to a total of $245 billion in 2025, in order to counter U.S. influence in Asia. China is already the second largest spender on defense in the world behind the United States.

China’s defense spending is poised to climb by 7.2% this year, a similar pace as last year, underscoring President Xi Jinping’s ambition to build a military that can challenge the US.

China will boost its defence spending by 7.2% this year, maintaining a steady growth rate as Beijing faces headwinds from three years of sluggish economic expansion and mounting geopolitical challenges from Taiwan to Ukraine.