2005 defence spending to hit 20 billion euro
Beijing (AsiaNews/Agencies) Mainland defence spending for 2005 is expected to maintain double-digit growth and hit 230 billion yuan (almost 20b euro), Wen Wei Po reported. The Beijing-backed newspaper said the State Information Centre announced in its recently completed fiscal forecast for 2005 that there will be no drop in the budget increases for the People's Liberation Army, as well as in the sectors of administrative management and the public security organs.
Based on the report, the PLA's 2005 expenditures would grow by at least 25 billion yuan to 230 billion yuan. Last year's budget of 218.3 billion represented an 11.6 per cent increase over the 2003 budget, which was only a 9.6 per cent increase, the lowest in 14 years.
Arthur Ding, PLA expert at National Chengchi University's Institute of International Relations in Taipei, said the release of the budget forecasts signalled that the Ministry of Defence and Minister of Finance have finally agreed after months of negotiation.
He also said the announcement indicated the PLA will soon release its annual white paper on China's military priorities. However, Professor Ding noted the figures provided no new insight into the PLA since they did not provide details on specific military expenditures.
Many analysts believe China's return to high-growth defence spending signifies the mainland's active preparation for a potential conflict in the Taiwan Strait, particularly with the re-election of Taiwan President Chen Shui-bian, his bids to change the island's constitution and proposal to purchase NT0.8 billion (6.8 billion) in arms from the United States.
The rise in spending is believed to be meant to allow an increase in the benefits of the PLA's 2 million soldiers and to purchase new advanced weaponry. Last week it was reported Defence Minister Cao Gangchuan signed a series of weapon sales agreements with Russian Defence Minister Sergei Ivanov in Beijing.
The purchases are to include Tu-160 supersonic strategic bombers, SU-27SK fighter jets, and missile defence systems.
Beijing is also seeking advanced weapons from European nations once the European Union agrees to lift its 15-year arms embargo against Beijing. The abolition of the sanctions may occur during the first half of next year.
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15/04/2005
