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Chinese military receives funding backing

Lankan Ranger

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Chinese military receives funding backing

Maj Gen Jiang Luming, head of the Institute for Defence Economics at China’s National Defence University, said in an article on Wednesday that China needed to increase its military spending from the current level of 1.4 per cent of gross domestic product to up to 2.8 per cent, in order to close the gap with military technology in developed countries.

His appeal – which appeared in Study Times, the newspaper of the Communist party’s Central Party School – is part of intense lobbying efforts in readiness for the final draft of Beijing’s next five-year plan, which will determine funding for many departments and industries up until 2015. The military is pushing for a sustained effort to build China’s indigenous military industrial capacity.

The call for a spending increase will further fuel concerns in the US and several of China’s neighbours, about a more assertive military stance from Beijing.

During the past month, revelations surrounding three major Chinese arms projects – the long-awaited confirmation of China’s aircraft carrier programme, US claims that China is deploying a missile to threaten US carriers, and pictures revealing tests of Beijing’s first stealth fighter – have done little to quell these concerns.

China put the increase in its official defence expenditure at 7.5 per cent last year, the first increase below 10 per cent since 1989, in an attempt to counter a “China threat” perception and reassure the international community about the country’s rise. The official defence budget for 2010 was Rmb532bn ($80.8bn).

But independent observers believe Beijing’s total military spending is much higher. According to the Stockholm International Peace Research Institute (Sipri), China’s 2009 expenditure was second only to the US at US$100bn, or 2 per cent of its GDP. Sipri estimates that China increased its military expenditure by 217 per cent between 2000 and 2009, faster than any other major country.

Chinese government and military officials dismiss fears that their country’s military is overblown.

“Due to a relative lack in funding, the pace of our military’s modernisation has suffered,” Gen Jiang said. “Even though the standard of our weaponry has been raised more in recent years, the reality is that our overall arms equipment standard still lags far behind the main developed nations has not changed in principle.”

Sipri figures put China’s defence spending at 2 per cent of GDP, while the US spends 4.5 per cent of GDP.

FT.com / Asia-Pacific - Chinese military receives funding backing
 
Perpetual funding does not neccessarily produce the desired results. Ex: USSR

A moderate expenditure increase in line with GDP growth, coupled with efficient management and investment in dual-use technology is the right path. Ex: NASA and DoD subsidies for semiconductor.
 
I think China wants to push India into arms race with simple war of words.. India at 1/5th of China economy and much smaller in terms of surplus is likely to be drained in early death! After all the Chinese have emerged victorious in economic war over west now its only for them to take the battle one step further into war of spending!
 
I think China wants to push India into arms race with simple war of words.. India at 1/5th of China economy and much smaller in terms of surplus is likely to be drained in early death! After all the Chinese have emerged victorious in economic war over west now its only for them to take the battle one step further into war of spending!

1) India is at 1/4.2 of the Chinese economy

2) Account balance matters little to the health of an economy. However, trade surplus builds up forex, which grants countries like China much greater supranational purchasing power over others suffering from chronic external deficits.
 
I think China wants to push India into arms race with simple war of words.. India at 1/5th of China economy and much smaller in terms of surplus is likely to be drained in early death! After all the Chinese have emerged victorious in economic war over west now its only for them to take the battle one step further into war of spending!

It has nothing to do with India.Currentlly India is not in Chinas radar.The author himself stands for the PLA,and he expressed the PLAs concern on military budget since of the recent tensions around China like two Korea conflict,south China sea and Diaoyu island dispution.I think next year they will raise a 15% increase in military budget to comfort the PLA.Last years 7% increasement makes a lot of people unhappy it seems.
 
I think China wants to push India into arms race with simple war of words.. India at 1/5th of China economy and much smaller in terms of surplus is likely to be drained in early death! After all the Chinese have emerged victorious in economic war over west now its only for them to take the battle one step further into war of spending!

Does this apply to India and Pakistan--- your economy is 1/100th of our... Oh wait, You will Nuke us:lol:
 
Does this apply to India and Pakistan--- your economy is 1/100th of our... Oh wait, You will Nuke us:lol:

it applies, pakistan is having a hard time keeping up with india as it is, nuke help deter full out war but not build up.
 
Perpetual funding does not neccessarily produce the desired results. Ex: USSR

A moderate expenditure increase in line with GDP growth, coupled with efficient management and investment in dual-use technology is the right path. Ex: NASA and DoD subsidies for semiconductor.
Great post! You hit the nail on the head. A 2x increase in military spending / GDP is massive! Look at how fast China is moving with only 1.4%. Admittedly, there is a lot of absorbing foreign technology to increase efficiency.

As China gets to the bleeding edge, it will need a 2x increase to do more innovative R&D. Innovation needs more trial and error, including expensive dead-ends (DDG1000 Zumwalt), and who knows somebody else might come along and reverse engineer China's technology at low cost. But that's the way the game is played.

Perhaps the Maj. General's point to the civilian leadership is to say, "We do not want to merely maintain a one-generation gap so we can take advantage of cheap reverse engineering tactic. We actually want to be on the bleeding edge and innovating. It is worth it in the end."
 
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