China on Saturday announced a 7% rise in annual military spending, the smallest increase in seven years.

It comes as the nation's parliament convenes its annual meeting, amid ongoing tensions in the South China Sea and acrimony over South Korea's deployment of a missile defense system.

A South Korean conglomerate approved a land swap deal with Seoul Monday, bringing the controversial THAAD missile defense system one step closer to reality despite Beijing's strong opposition to it, CNN reports.