BEIJING, March 4 (Xinhua) — China said Sunday it plans to raise its defense budget by 11.2 percent to 670 billion yuan (106.4 billion U.S. dollars) in 2012.
The year’s draft defense budget is 67.6 billion yuan (10.7 billion U.S. dollars) more than that of 2011, said LiZhaoxing, spokesman for the annual session of China’s national legislature.
“The Chinese government follows the principle of coordinating defense development with economic development. It sets the country’s defense spending according to the requirement of national defense and the level of economic development,” Li said.
For background, see Andrew S. Erickson and Adam P. Liff, “Understanding China’s Defense Budget: What it Means, and Why it Matters,” PacNet 16 (9 March 2011).