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Defence & Aerospace

China announces surprisingly slower military budget increase

China's President Hu Jintao (2nd row, 2nd L), China's Communist Party Chief Xi Jinping (2nd row, 3rd L), China's Premier Wen Jiabao (2nd row, 3rd R), China's Vice-Premier Li Keqiang (2nd row, 2nd R) and other top leaders and delegates sing the national anthem during the opening ceremony of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing March 3, 2013

China’s President Hu Jintao (2nd row, 2nd L), China’s Communist Party Chief Xi Jinping (2nd row, 3rd L), China’s Premier Wen Jiabao (2nd row, 3rd R), China’s Vice-Premier Li Keqiang (2nd row, 2nd R) and other top leaders and delegates sing the national anthem during the opening ceremony of the Chinese People’s Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing March 3, 2013

Reuters says in its report today titled “China boosts defence budget by 10.7 percent for 2013, “China will raise military spending by 10.7 percent this year to 740.6 billion yuan ($119 billion), the government announced on Tuesday, adding to a nearly unbroken series of double-digit increases in the defence budget over two decades.”

The surprising figure give readers impression of China’ super efficiency in its military spending.

China is developing its GPS system, two stealth fighters, a huge transport aircraft, carrier-based fighter jets, a new generation of early warning aircrafts, nuclear-powered submarines and aircraft carriers, ICBM interception missiles and anti-aircraft carrier missiles.

It will spend $16 billion in developing aircraft engines and is building type 052D Aegis destroyers and type 056 advanced frigates at neck-breaking speed. According to mil.huanqiu.com, a few shipbuilding enterprises are turning out one type 056 frigate a month.

China is carrying out research activities and producing military hardware in a scale similar to the United States’ but is able to spend only a fraction of what the US spends. How wonderful!

In my post “Tremendous increase in China’s military spending amid territorial rows” on March 2, I mentioned the different way of calculation of China’s military spending and the substantial discount it enjoyed in its weapon development and purchase from its state-owned weapon developers and producers. That may reduce the amount of spending substantially, but not so much as to $119 billion.

Reuters says in its report, “Beijing’s public budget is widely thought by foreign experts to undercount its real spending on military modernisation.” I believe so.

In my post, I said: What is China’s priority now? It will not be bullied by other countries in the future. That is the major part of what Xi Jinping refers to as the China dream–the renewal of the Chinese nation.

How much China will spend for that dream? As much as it can afford.

How much of the real spending China will make public? As long as the amount is acceptable to domestic and international public opinions. That will certainly not be the real amount.

I expected that the budgeted amount would have been much larger as China wants to satisfy its people’s surging nationalism and project the image of a military hardliner in the maritime territorial disputes with its neighbours.

The understated figure is at least good in showing China’s intention to continue to pursue a peaceful rise and maintain peaceful relations with its neighbours.

Source: Reuters – “China hikes defense budget, to spend more on internal security”

About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee



  1. Pingback: CHINA: BEFORE THE OPEN, 06Mar2013 | Headline Asia - March 6, 2013

  2. Pingback: China’s inner circle: The three black boxes | China Daily Mail - March 7, 2013

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