Last year, the defense budget increased by 7.2 percent.
China has the second largest military budget in the world, right after the USA.
Since coming to power in 2013, Chinese President Xi Jinping has insisted on a comprehensive modernization of the People's Liberation Army, with the goal of building a "world-class military" by 2049.
The budget increase comes at a time of ongoing regional tensions, particularly over Taiwan, an island that Beijing considers part of its territory, ruled democratically for decades.
Xi has repeatedly stressed that reunification will not be postponed indefinitely and could involve the use of force.
China has recently increased military pressure on Taiwan through large-scale naval and air military exercises.
Big changes within the army too
Along with the modernization, the Chinese leadership is also implementing sweeping changes within the military. In recent years, many senior generals have been removed or are under investigation in what analysts are calling one of the biggest purges in the Chinese military in decades.
This campaign has recently intensified further, and several military representatives have been removed from the legislative body ahead of Congress, Fena reports.
The measures extend to the very top of the armed forces, including officers affiliated with the Central Military Commission, the People's Liberation Army's highest decision-making body chaired by Xi and which oversees military strategy and operations.
Experts say the aim of these moves is to fight corruption and ensure the political loyalty of the military, as well as remove structures that are considered obstacles to modernization, DPA reports.