[expat_panama]

How do you imagine they are getting the wealth to pay for it if not through trade?

Imagine talk is really not what we need here.   Let's use observed dollar totals for spending and sales. 

In 2015 China's total sales of foreign goods and services  was about $600B more than their purchases (U.S. share = $91B).  Now, that would be plenty of money to cover their $150B 2015 military budget (about half their total gov't spending) --providing they were able to pay their personnel and suppliers in Euros, pounds sterling, and dollars (Australian, U.S., Canadian, etc.) but then they couldn't pay off their foreign $600B trade deficit in their purchases of land, bonds, design rights, and buildings.

Here's what we got: China's 2015 gdp was somewhere between $12T and $20 depending on who you talk to and as we all know (I hope) $1T = $1,000B. Their government can easily sponge off their economy just like ours does.  See for yourself:

https://www.census.gov/foreign-trade/balance/c5700.html

http://www.tradingeconomics.com/china/government-spending

http://www.tradingeconomics.com/china/gross-national-product

 

[Toddsterpatriot]

Here's what we got: China's 2015 gdp was somewhere between $12T and $20 depending on who you talk to.....Their government can easily sponge off their economy just like ours does.

Yes. And when they want to buy materials and equipment for their military from other countries, it's a lot easier when you have a huge pile of dollars. Commie currency isn't the most trustworthy.

[jospehm20]

I think you are missing my point. The money they use to run their government, including the military comes from China manufacturing and selling stuff. We are their biggest partner so we in effect fund a lot of their military buildup. I also read that the US thinks the ChiComs are underreporting there military spending by about 100%. That military budget may be closer to $300B than $150B.