The Chinese yuan continues to be under pressure.

US President Joe Biden has proposed a record-high budget of $8.86 trillion for fiscal year 2025, which represents a 3.3% increase from the previous year, as the US government prioritizes China as its top challenge and seeks to bolster measures in the Indo-Pacific region.

Kyodo News reported that the Biden administration plans to spend a total of $6.88 trillion, an 8% increase from the previous government budget for the fiscal year beginning October 1, 2022. At the same time, the administration pledges to reduce the budget deficit by approximately $3 trillion over the next decade through increased taxes on high-income earners and corporations.

Biden has stated that the increased budget will be used to promote comprehensive deterrence in the Indo-Pacific region and beyond, along with partnerships and equity participation.

Meanwhile, the United States' Department of Defense has requested a budget of $842 billion for the upcoming fiscal year, which is a 3.2% increase from the approved level in 2022, with $91 billion allocated to various projects aimed at enhancing the country's military capabilities in the region.

On the other hand, Xi Jinping is consolidating his power over China's government and economy. Members of the National People's Congress (NPC) have gathered in Beijing to pass laws and key policies aimed at reforming the country's legal system. During the meeting, China announced that it would lower its economic growth target to around 5% this year, while increasing its defense budget by around 7% to $225 billion, or approximately 7.75 trillion baht. However, compared to the United States' budget, China's defense spending is still much lower, with the US spending over four times as much on defense.