China Ramps Up Defense Spending by 7 Per Cent, But How Does it Compare with Other Countries By Amber Wang and Jack Lau SCMP, March 5, 2022

Chinese soldiers parading, file, March 5, 2022

 

Increase is the seventh single-digit rise in a row, up from 6.8 per cent last year Premier Li Keqiang pledges to improve military training and combat readiness for the People’s Liberation Army

China’s defence spending is expected to grow by 7.1 per cent this year, the fastest pace since 2019, as it ramps up its military modernisation efforts amid an intensifying rivalry with the West.

The spending estimate was released on Saturday as part of the central government’s finance report and came as Premier Li Keqiang pledged to improve military training and combat readiness for the People’s Liberation Army.

In his address to the opening session of the National People’s Congress, Li told deputies that the military needed to safeguard the country.

“We will enhance military training and combat readiness, stay firm and flexible in carrying out our military struggle, and safeguard China’s sovereignty, security and development interests,” Li said.

Li said China would move faster to modernise the military’s logistics and asset management systems, and build a modern weaponry and equipment management system.

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The increase in defence spending would take the budget to 1.45 trillion yuan or around US$230 billion, and is up from a 6.8 per cent increase in 2021 and a 6.6 per cent rise in 2020.

It is the seventh consecutive single-digit increase for defence and reflects continued focus on the military despite an overall economic growth target of 5.5 per cent for the year.

The commitment comes as China’s relations with the United States and its allies worsen and Beijing grapples with security challenges on several fronts, including territorial disputes in the South China Sea, continued high tensions in the Taiwan Strait, and border disputes with India.

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The US sent its aircraft carrier strike groups and amphibious groups into the South China Sea 13 times last year, more than double the activity a year earlier, according to the South China Sea Strategic Situation Probing Initiative, a Beijing-based think tank.

Fu Qianshao, a retired Chinese air force equipment specialist, said China’s economic recovery laid a good foundation for the country to increase military spending.

Fu said the growth in the military budget meant the spending was still less than 2 per cent of GDP, well below the share allocated to US military spending.

US President Joe Biden is expected to ask Congress for a defence budget of about US$773 billion for the next financial year.

Military spending as a share of GDP for the US, South Korea, India and Taiwan rose steadily from 2017 to 2020, according to the Stockholm International Peace Research Institute.

The figure increased in 2020 but the economies shrank because of the coronavirus pandemic, likely inflating the share of military spending.

India planned to increase its military spending to 3.85 trillion rupees (US$51.5 billion) for the 2022-23 financial year.

Taiwan announced a NT$372.6 billion (US$13.3 billion) defence budget, in addition to the NT$40.1 billion reserved to buy 66 F-16V fighter jets from the US.

Although Japan planned a 10th consecutive yearly increase in its 2022 defence budget, it amounted to a rise of 1.1 per cent to 5.4 trillion yen (US$47 billion), a total that was about a fifth of that expected to be spent by China.

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Fu said the defence budget would be used to expand and upgrade the People’s Liberation Army’s weapons, as well as improve training and welfare support for personnel.

“Equipment is needed to fill performance gaps, and aircraft carriers, large warships, stealth fighters, third and fourth generations of tanks are expensive,” he said.

James Char, an associate research fellow with the China programme at Singapore’s S. Rajaratnam School of International Studies, said China was spending on personnel, equipment and training, but a big part of the budget would also be spent on procurement and research and development, given China’s push for technological self-sufficiency.

“Its revamped personnel management policy for officers announced last year would likely also demand more funds for its implementation,” Char said.

China is aiming to transform the PLA into a world-class military force by 2035.

“To do so, it needs to prioritise the upgrading of its hardware to become a completely mechanised and informatised force,” Char said.

He said that while Russia’s invasion of Ukraine did not influence Chinese defence policy, the weakness of Russian hardware exposed in the conflict might force China to think hard about whether they should buy more Russian Ka-52 attack helicopters.

“[The Russian weaknesses] will give Beijing more reason to exercise prudence in its dealings with Washington and other regional rivals whilst the Chinese military-industrial complex is allowed to develop,” Char said.

Former PLA instructor Song Zhongping said China was facing increasing external security threats, including the US’ targeting of China in the Asia-Pacific.

“In particular, the US has added a special fund to the Pacific Deterrence Initiative to target China,” Song said.

“Therefore, China needs to strengthen its ability to prepare for military struggles, strengthen the level of military modernisation, informatisation, and intelligence to win potential military conflicts or even wars in the future.”

He added that in general, other countries spent about 2 per cent of GDP on defence, while China had earmarked about 1.4 per cent, leaving “a lot of room for growth”.

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Amber Wang is a reporter for the China desk, and focuses on Chinese politics and diplomacy. She joined the Post in 2021, and previously worked for The New York Times and Southern Metropolis Daily.

Jack joined the Post in 2020 after studying journalism at the University of Hong Kong. Before that, he read law in London and Hong Kong, where he assisted with research in Chinese legal institutions and civil dispute resolution.

China ramps up defence spending by 7.1 per cent but how does it compare with other countries? | South China Morning Post (scmp.com)

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