New Communist Party chief Xi Jinping, who is also chairman of the Central Military Commission, approved the rules which aim to promote austerity and control expenditure, the official Xinhua news agency said.
Xi, who is set to become president next month, has repeatedly pledged to fight graft amid rising social discontent at government corruption and political scandals that have tarnished the ruling party.
The new rules require strict control of spending on non-essential infrastructure, procurement and official receptions, Xinhua said.
The military must "resolutely prevent redundant construction, the craving for things big and foreign, extravagance and waste", it said.
Spending should be directed towards the military's core mission, including being able to fight and win a battle, Xinhua said, repeating a slogan which has been described by state media as a key goal for this year.
China is due to announce its annual military budget in early March at a meeting of the National People's Congress, the country's legislature.
Last year it projected the military budget would rise 11.2 percent year-on-year to $106 billion, an increase that has caused unease among Asian neighbours including Japan, which is locked in a territorial dispute with China.
In December the military banned high-ranking officers from being treated to receptions featuring expensive liquor and luxury banquets, in line with similar rules for party officials.
Those rules also called on military officers to prevent family members and associates from accepting bribes.
A corruption watchdog, Transparency International, said last month that China's military is battling a major corruption problem, with little political oversight and no whistleblower mechanism to counter graft.
One of the major problems was the absence of private military defence contractors, meaning less scope for competition, the Berlin-based group said.
It claimed thousands of military-linked enterprises in China were engaged in profit-oriented business.-Rappler (February 24, 2013 6:49PM)
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