China Rushes To Fill America's Military Vacuum

Investor's Business Daily ^ | March 7, 2012 | IBD staff

[ponder life]

Forgetting the fact that the US budget is many times larger, we need to also keep in mind, that even when we consider a percentage of her GDP, China's budget is still quite a bit smaller. And even if you don't believe China's estimates, but the Pentagon's (which is 50% to twice as large as China's official), it would still be smaller, as a percentage of GDP than the US.

If China's defense, as a percentage of GDP, crosses the 10% market, then it would be a worry, and pass the 20% mark, I would start being alarmed. But as of now, even with Pentagon estimates, is around 2-3% of GDP. Which is less than America's 4.8% of GDP.