China to increase defence spending by 15 per cent

Telegraph (U.K.) ^ | March 4, 2009 | Richard Spencer

[Schnucki]

China is to increase official military spending by almost 15 per cent this year as it seeks to upgrade its smart technology and improve the living standards of its soldiers.

The 14.9 per cent rise to 480.7 billion yuan (£50 billion), up 62.5 billion yuan from 2008, was announced in advance of the annual meeting of the rubber-stamp parliament, the National People's Congress.

It is slightly smaller than the increase in recent years, suggesting that the government is focusing its spending on boosting the wider economy.

But after rises of 17.8 per cent in 2007 and 17.6 per cent in 2008, it still amounts to a rise of more than half since 2006.

In addition, the United States claims that real spending is significantly higher, as many costs, including major arms purchases, are kept off the officially announced budget.

This claim was rejected by Li Zhaoxing, a former foreign minister acting as spokesman for the Congress.

He said that China had signed up to the United Nations code for reporting military expenditure in 2007.

"There is no such thing as the so-called hidden military expenditure in China," he said.

He said that this year military spending would be 6.3 per cent of the total budget, and 1.4 per cent of GDP, compared to four per cent in the United States and two per cent in Britain and France.

China is known to be upgrading its nuclear arsenal and has all but confirmed plans to build its first aircraft carrier, but it is unclear whether these heavy cost loads are included in the budget.

[television is just wrong]

while the great ZERO is cutting ours.

[NY.SS-Bar9]

China is in serious trouble at the moment.

The real estate boom did not pass China by. Neither did the bust. The sharp drop in Chinese exports has left a large unemployed, majority male populace. They are ransacking cities like Shanghai, and overrunning the fancy new construction.

The government may have no choice but to channel this energy outside its borders. Where is anyone’s guess. But I would not want to be anywhere between India and Korea at the moment.

[ponder life]

He said that this year military spending would be 6.3 per cent of the total budget, and 1.4 per cent of GDP, compared to four per cent in the United States and two per cent in Britain and France.

My speculation is that China will continue to expand their military until their total expenditures as a percentage of GDP is equivalent to the US percentage of GDP (which, as stated above, is about 4%), which is not an unreasonable goal for any country. Israel spends upwards of close to 20%. Pre-War Iraq, under Saddaam approached 50%. And North Korea, I wouldn't doubt, is close to 50% as well.

China really is determined to have a civilian driven economy and not a military driven economy.