The move, which was long expected but has been controversial even in China, has helped cement Mr Xi's status as the most powerful leader since Chairman Mao Zedong.
China stepped up its push to curb financial risk, cutting its budget deficit target for the first time since 2012 and setting a growth goal of about 6.5%, omitting last year's aim for a faster pace if possible.
The commander of the U.S. Navy's Pacific Fleet said on Tuesday that China's military budget had a troubling lack of transparency, a day after Beijing announced the biggest hike in military spending in three years.
Mr Trump past year said he meant to increase United States military spending by ten percent to $603 (£491 billion).
Worldwide investment banks including UBS, J.P. Morgan and Nomura also revised their China 2018 GDP growth prediction upward to as high as 6.7 percent.
A security guard watches over delegates and journalists during the opening session of the National People's Congress, China's legislature, in Beijing's Great Hall of the People on March 5, 2018.
China projected a modest growth target of 6.5% of gross domestic product, the same as previous year, while presenting the budgetary proposals to the National People's Congress, the Chinese parliament, on Monday. That was four times less than the United States, spending 603 billion Dollars, but more than Saudi Arabia and Russian Federation, respectively, spending 77 billion Dollars and 61 billion Dollars, according to data from the London-based International Institute for Strategic Studies.
Xinhua said that China's recent reorganization of its military cut in half the number of "land force personnel among the entire" People's Liberation Army. According to a report in CNN, Trump said, "He's now president for life". "It is increasingly clear that China and Russian Federation want to shape a world consistent with their authoritarian model - gaining veto authority over other nations' economic, diplomatic, and security decisions".
In an article on its website, China's Defence Ministry cited Chen Zhou, a researcher at the Academy of Military Science, as saying the spending increase was "reasonable" and "sustainable" and that there were no "hidden military funds".
China's "intent is not clearly understood", he said.
One interpretation of China's current military posture is that the spending surge of the early 2000s improved infrastructure and gave the Chinese military force-projection capabilities it previously lacked; the new spending binge will give it world-class equipment and training, making Chinese units capable of holding their own against Western forces and close American allies like Japan and South Korea.
Dong Mingzhu, chairwoman and president of Gree Electric Appliance, said the report has fully taken the public opinion into consideration as it vows to lighten tax burdens on businesses, and reduce taxes on businesses and individuals by more than 800 billion yuan (US$126 billion).