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 China’s defense 
spending to top US$100 billion 
 
CONCERNING: While the 11.2 percent rise over 
last year is a slowdown in pace, one Taiwan-based analyst thinks it will still 
leave some countries ‘really concerned’ 
 
AFP, Beijing 
 
China said yesterday its military spending would top US$100 billion this year — 
a double-digit increase over last year — in a move likely to fuel concerns about 
Beijing’s rapid military buildup. 
 
The defense budget will rise 11.2 percent to 670.27 billion yuan (US$106.41 
billion), National People’s Congress spokesperson Li Zhaoxing (李肇星) said, citing 
a budget report submitted to the country’s legislature. 
 
The figure marks a slowdown from last year when spending rose by 12.7 percent, 
but is still likely to fuel worries over China’s growing assertiveness in the 
Asia-Pacific region and push its neighbors to forge closer ties with the US. 
 
Li described the budget as “relatively low” as a percentage of GDP compared with 
other countries and said it was aimed at “safeguarding sovereignty, national 
security and territorial integrity.” 
 
“We have a large territory and a long coastline, but our defense spending is 
relatively low compared with other major countries,” Li told reporters. “It will 
not in the least pose a threat to other countries.” 
 
China has been increasing its military spending by double digits for most of the 
past decade, during which time its economy, now the world’s second largest, has 
grown at a blistering pace. 
 
The People’s Liberation Army (PLA) — the world’s largest with an estimated 2.3 
million troops — is hugely secretive about its defense programs, but insists its 
modernization is purely defensive in nature. 
 
The rapid military buildup has nevertheless set alarm bells ringing across Asia 
and in Washington, which announced in January a defense strategy focused on 
countering China’s rising power. 
 
Analysts said the smaller-than-expected increase in spending this year was an 
attempt by Beijing to ease concerns in the US and the region about its growing 
military might. 
 
“It is doubtful whether the message will get across because most countries know 
that the real budget is at least double the published one,” said Willy Lam 
(林和立), a leading China expert at the Chinese University of Hong Kong. 
 
Lam said funding for modernizing the country’s military was not included in the 
published budget, which mostly covered salaries for defense personnel and 
maintenance of existing equipment. 
 
Money for research and development of modern weaponry “comes from elsewhere,” he 
said. 
 
Taiwan-based PLA expert Arthur Ding (丁樹範) said the still considerable growth in 
this year’s budget would push “regional countries to try to build closer ties 
with the United States.” 
 
“I think the regional countries will be really concerned about that,” Ding said. 
“China has to explain and try to convince the regional countries why they need 
such a high growth rate.” 
 
China began revamping the PLA in earnest after a troubled 1979 incursion into 
Vietnam, when the neighbors vied for influence over Southeast Asia. 
 
China’s defense budget is expected to double between last year and 2015 and 
outstrip the combined spending of all other key defense markets in the 
Asia-Pacific region, global research group IHS said last month. 
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