China's defence spending up to 70 per cent higher than official figures
Beijing (AsiaNews/Agencies) China's defence spending is 40 to 70 per cent higher than official Chinese government figures, this according to a recent study by the RAND Corporation.
The RAND report reveals that China spends between 2.3 and 2.8 per cent of its Gross Domestic Product, an estimated US$ 69 billion to US$ 78 billion in 2001 dollars and twice as much as in 1999.
By comparison, US defence spending in 2004 amounted to nearly US$ 430 billion or 3.9 per cent of its GDP.
Experts warn that at this pace China will outspend all of the US allies.
Greater investments and access to foreign military systems and related equipment, materials and technologies has made Chinese defence companies more efficient and improved the sophistication and quality of the military equipment produced domestically in sectors such as information technology, shipbuilding and defence electronics.
On May 19, China's Finance Ministry Xiang Huaicheng presented a paper that projected a 9.6 per cent increase in defence spending.
The paper said the increase was "necessary" for China "to adapt to the changes in the international situation, safeguard national security, sovereignty and territorial integrity, and increase the efficiency of the armed forces in case of war".
This increase comes on top of the 12.6 per cent increase announced in March of this year during the People' National Congress.
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