China said it will increase military spending by about seven per cent this year, just days after President Donald Trump outlined a boost to the United States defence budget.

The scheduled announcement was made ahead of the annual National People’s Congress (NPC) in Beijing, the BBC reports.

China has been modernising its armed forces recently as its economy expands.

The country announced defence budget remains smaller than that of the US.

But many China observers argue the real figure could be much higher.

The announcement marks the second consecutive year that the increase in China’s defence spending has been below 10 per cent following nearly two decades at or above that figure.

It means that total spending will account for about 1.3 per cent of the country’s projected Gross Domestic Product in 2017, the same level as in recent years, said government spokeswoman Fu Ying.

The precise figure for the country’s military spending will be provided by Chinese Premier Li Keqiang when he addresses the NPC on Sunday.