BEIJING/HONG KONG: China announced its biggest rise in military spending in three years on Wednesday, a strong signal from President Xi Jinping that Beijing is not about to back away from its growing assertiveness in Asia, especially in disputed waters.
The government said it would increase the defence budget by 12.2 per cent this year to 808.23 billion yuan ($131.57 billion), as China seeks to develop more high-tech weapons and to beef up coastal and air defences.
The increase follows a nearly unbroken run of double-digit hikes in the Chinese defence budget, second only to the United States in size, for the past two decades.
“This is worrying news for China’s neighbours, particularly for Japan,” said Rory Medcalf, a regional security analyst at the independent Lowy Institute in Sydney. Those who thought Xi might prefer to concentrate on domestic development over military expansion in a slowing economy had “underestimated the Chinese determination to shape its strategic environment”, he added.
The 2014 defence budget is the first for Xi, the ‘princeling’ son of a late Communist Party elder, and the increase in spending appears to reflect his desire to build what he calls a strong, rejuvenated China.
Xi also recently urged China’s military leadership to work faster to get the country’s sole aircraft carrier combat-ready.
The spending jump is the biggest since a 12.7 per cent rise in 2011.
Within hours of the announcement, officials in Japan and Taiwan expressed disquiet over the absence of any details on how Beijing will spend the money — concerns long echoed in Washington with China’s defence budgets. China and Japan, a key US ally in the region, are increasingly locking horns over uninhabited rocky islands each claims in the East China Sea.
Beijing also claims 90 per cent of the 3.5 million sq km (1.35 million sq mile) South China Sea, which is believed to be rich in oil and gas. The Philippines, Vietnam, Malaysia, Brunei and Taiwan claim parts of those waters.
Speaking at the opening of China’s annual session of parliament, Premier Li Keqiang said the government would “strengthen research on national defence and the development of new- and high-technology weapons and equipment” and “enhance border, coastal and air defences”.
“We will comprehensively enhance the revolutionary nature of the Chinese armed forces, further modernise them and upgrade their performance, and continue to raise their deterrence and combat capabilities in the information age,” Li told the largely rubber-stamp National People’s Congress.
He gave no details.
Force projection
China’s military spending has allowed Beijing to create a modern force that is projecting power not only across the disputed waters of the East and South China Seas, but further into the western Pacific and Indian Oceans.
Much military spending likely takes place outside the budget, however, and many experts estimate real outlays are closer to $200 billion. The US Defense Department’s base budget for fiscal 2014 is $526.8 billion.
The budget spike comes as Asia reacts nervously to a string of recent moves by China to assert its sovereignty in disputed territory, expand its military reach and challenge the traditional dominance of US forces in the region. Chinese fighters and surveillance planes now routinely patrol a controversial new air defence identification zone that covers disputed Japanese-administered islands in the East China Sea. (Agencies)
