A Peaceful Nation...
...does not need to raise its military budget by 14.7%.
Granted, it's impossible to know what China's exact budget really is, since it would be foolish to believe any figures emanating from the PRC itself. The US believe's last year's spend was $90; the PRC puts it at a third of that.
However, whatever the true sum, the announcement of the budget increase is a clear signal. The extra cash for fuel and salaries cannot be much more than 5%, in my reckoning, given average world fuel price increases of 2% and Chinese inflation also of about 2%. So that's 10% for technological development.
Were I Taiwan, I would be reading between the lines, especially having just scrapped my council on re-unification. Funny that this announcement is coming now - I'd call it a warning.
BBC report below.
China's military budget jumps 14%
China has said it will increase its military spending by 14.7% this year to 283.8bn yuan ($35.3bn; £20bn).
However, a spokesman for the Chinese parliament said much of the rise would be to cover fuel and salaries and that China was a "peace-loving nation".
Jiang Enzhu said the US spent a greater proportion of its economy on defence and that China had "no intention of vigorously developing armaments".
The US has several times accused China of understating its military budget.
China's armed forces are the biggest in the world and have seen double-digit increases in military spending since the early 1990s.
The increases have caused concern for neighbours Japan and Taiwan.
The US has also expressed fears over the spending on the 2.5m-strong military.
Washington has several times accused China of understating its military budget.
It said last year's spend was not the $30bn stated but closer to $90bn.
China insists its spending is in line with rises in other governments.
Mr Jiang said: "China's defence budget has risen in recent years along with the development of its economy.
"But the proportion of the budget given over to defence spending is much the same as in past years."
China also says its military spending is dwarfed by the US. The US department of defence had a base budget of $400bn in 2005.
Mr Jiang said China's increases would go on salaries, new equipment, training and higher fuel costs.
He added: "I wish to emphasise that China is a peace-loving nation. China is committed to a path of peaceful development."
Comments
I wonder if this is an issue.
Since the economy is growing at around 9% it stands that military spending would increase that amount if pegged to GDP.
Also, ancillary items like fuel costs add to the total cost of spending.
What is the big issue, and you touch on this, is the fact that no one knows the true amount being spent on the military by Beijing.
Posted by: dave | March 5, 2006 4:27 AM