04 March 2014

It’s Official: China’s Official Defense Budget to Increase 12.2% in 2014 to ~$132 Billion (808.2 Billion Yuan)

China Defense Budget to Increase 12.2% in 2014,” Xinhua, 5 March 2014.

Updated: 2014-03-05 09:18

BEIJING – China plans to raise its defense budget by 12.2 percent to 808.2 billion yuan (about $132 billion) in 2014, according to a budget report to be reviewed by the national legislature on Wednesday.

In 2013, the country spent 720.197 billion yuan on national defense, a 10.7-percent increase from the previous year.

Double-digit growth in China’s defense budget in recent years has caused some concerns from western countries. But experts said China’s military expenditure is moderate and in line with the country’s economic conditions.

Yin Zhuo, director of the Expert Consultation Committee of the People’s Liberation Army (PLA) Navy, said China’s military spending is still far from the level it needs to be as the country faces increasingly severe security challenges.

Although the rise in the defense budget in the past three years has surpassed GDP growth, the spending’s share in GDP, which came in at 1.4 percent, is still far below the world average of 3 percent, Yin said, citing statistics.

A report released by London’s International Institute for Strategic Studies showed the United States remained the world’s biggest defense spender in 2013, with a budget of $600.4 billion in 2013.

Relevant readings and media:

Andrew S. Erickson, “Testimony before the U.S.-China Economic and Security Review Commission,” Panel II: “Inputs to China’s Military Modernization,” “China’s Military Modernization and its Implications for the United States” hearing, Washington, DC, 30 January 2014.

Andrew S. Erickson, “China’s Near-Seas Challenges,” The National Interest 129 (January-February 2014): 60-66.

Andrew S. Erickson, “China’s Naval Modernization: Implications and Recommendations,” Testimony before the House Armed Services CommitteeSeapower and Projection Forces Subcommittee, “U.S. Asia-Pacific Strategic Considerations Related to PLA Naval Forces” hearing, Washington, DC, 11 December 2013. Click here for oral statement.

Adam P. Liff and Andrew S. Erickson, “Demystifying China’s Defence Spending: Less Mysterious in the Aggregate,”The China Quarterly 216 (December 2013): 805-30.

Nathaniel Austin, “Lifting the Shroud on China’s Defense Spending: Trends, Drivers, and Implications—An Interview with Andrew S. Erickson and Adam P. Liff,” Policy Q&A, National Bureau of Asian Research, 16 May 2013.

Andrew S. Erickson, “China’s Defense Budget: A Richer Nation Builds a Stronger Army,” Inaugural Presentation in “China Reality Check” Speaker Series, Center for Strategic and International Studies (CSIS), Washington, DC, 8 April 2012.

Andrew S. Erickson and Adam P. Liff, “China’s Military Development, Beyond the Numbers,” The Diplomat, 12 March 2013.

Andrew S. Erickson and Adam P. Liff, “A Player, but No Superpower,” Foreign Policy, 7 March 2013.
 
Andrew S. Erickson, “China’s Military Budget Bump: What it Means,” China Real Time Report (中国实时报), Wall Street Journal, 5 March 2013.