04 March 2012

China’s Defense Spending Dilemma

Gabe Collins and Andrew Erickson, “China’s Defense Spending Dilemma,” China Real Time Report (中国事实报), Wall Street Journal, 5 March 2012.

China’s always-controversial defense budget announcement will attract particular notice this year.

While the U.S. implements potentially dramatic cuts to its defense spending growth, China is robustly increasing its military spending, which is officially set to grow at a clip of 11.2% to 670.2 billion RMB ($106.4 billion) in 2012. …

China’s defense “pie” is growing rapidly, but the cost of key ingredients is rising faster still.