China on Saturday increased its defence budget by 7.6% to $146 billion for this year, reported PTI. The National People's Congress said the hike was due to the militarisation of the Asia-Pacific, especially the disputed South China Sea, and blamed the United States for deepening tensions. However, the 7.6% increase is the lowest in six years, following the economic slowdown.

The world's second-largest economy also set its growth target for the next five years at a modest 6.5% or above. China said it would target economic growth between 6.5-7% in 2016. This was after the country's GDP growth last year declined to 6.9% – the lowest in 26 years. Beijing is looking to balance deep structural reforms, gyrating financial markets and softening global trade, reported Reuters.