China Reveals Largest Defense Budget In Three Years

China’s government has been relatively vocal in transforming itself into a serious threat against the West — by modernizing its military in anticipation of future wars with Washington. It it therefore not surprising when the official Xinhua news agency reports that China will increase its defense budget by 8.1 percent in 2018, up marginally from last year’s 7 percent.

China has undoubtedly given America’s military-industrial complex and clueless politicians in Washington a stern message, by increasing its defense budget to the highest levels in more than three years, even as the country insists it does not mean harm.

According to the annual budget report, submitted to the first session of the 13th National People’s Congress Monday, the 2018 defense budget will be 1.11 trillion yuan (approximately 175 billion U.S. dollars). In 2017, the country spent roughly 1.02 trillion yuan (approximately 161.87 billion dollars) on its military budget in 2017, or about 1.3 percent of its gross domestic product (GDP).

The United States is the only country that outpaces China in defense spending, with the Pentagon’s expenditures exceeding four times Beijing’s, according to the latest report of the 2018 Military Budgets via the London-based International Institute for Strategic Studies (IISS).

In a speech at an annual Meeting of China’s National People’s Congress, Premier Li Keqiang suggested the country faced “profound changes in the national security environment,” requiring a stronger military.

As we stated before the conference, geopolitical strategists are concerned about President Xi Jinping aggressive military buildup and power grab, which has put Beijing on a crash course for military conflict with Washington.

“In the Asia-Pacific, the dominant role of the United States in a political and military sense will have to be readjusted,” said Cui Liru, former president of the China Institutes of Contemporary International Relations, a think tank under the Ministry of State Security that often reflects official thinking. “It doesn’t mean U.S. interests must be sacrificed. But if the U.S. insists on a dominant role forever, that’s a problem.”

Cui added that it was “not normal for China to be under U.S. dominance forever. You can’t justify dominance forever.”

“China’s military objective is to break through the first chain of islands,” said Mr. Cui, referring to the waters beyond Japan and Taiwan where the Chinese military wants to establish a presence. -NYT

According to the latest research from Stockholm International Peace Research Institute, China defense spending is around 1.9 percent of gross domestic product in 2016, when compared to 3.3 percent for the United States.

National Public Radio (NPR) signals that the increased military budget comes as the National People’s Congress scraps constitutional term limits for President Xi Jinping:

“The new military budget comes as the NPC abolishes term limits for China’s President Xi Jinping, a move that hearkens back to the era of autocratic rule under Mao Zedong and was signaled in October when Xi broke with precedent and failed to name a successor at China’s Communist Party Congress. ASIA USS Carl Vinson Will Spend The Next Few Days In Da Nang, Vietnam.

It also comes amid increased tension with the U.S., as Washington beefs up its naval presence in the South China Sea and Beijing has shown an increasing willingness to flex its muscles there, much to the chagrin of many of its maritime neighbors.”

Xinhua cites Major General Chen Zhou, a research fellow at the Academy of Military Sciences affiliated with the People’s Liberation Army (PLA) as stating:

“Steady and appropriate growth of defense spending is necessary because the Chinese armed forces have been modernizing to keep up with the country’s development. A large part of the increased spending is for upgrading equipment, supporting military reforms and improving the welfare and training conditions of servicemen and women.”

As we have noted before, China has set many goals to complete the modernization of its national defense and armed forces in the coming decades and transform its military into a world-class war machine by the mid-21st century.

In the past few years, China has been rapidly modernizing its armed forces that will enhance its equipment, tactics, technology, and combat readiness for the next conflict. Recently, the country has been vocal in its rollout of stealth jets, hypersonic aircraft and weapons, rail guns, and militarized islands.

“China’s emerging weapons developments and broader defense-technological progress mean that it has become a global defense innovator,” says Dr. John Chipman, Director-General and Chief Executive of the London-based International Institute for Strategic Studies (IISS).

“[While] a great power war is not inevitable, states are systematically preparing for the possibility of conflict,” he said, adding that China’s “land and naval forces are modernizing and progress in defense aerospace remains remarkable.”

* * * *

Following Trump's initiation of a trade war, China is preparing to retaliate to Trump’s proposed new tariffs. Bridgewater Associates founder Ray Dalio said Monday that a trade war is avoidable, but “tit-for-tat escalations” could be harmful to the global economy.

“It seems to me that good deals are to be had for both countries, while a trade war has the risk of tit-for-tat escalations that could have very harmful trade and capital flow implications for both countries and for the world,” Dalio wrote in a LinkedIn blog titled “A US-China Trade War Would Be a Tragedy.”

Nevertheless, perhaps now we understand why China is modernizing its military, because after trade wars comes hot wars…


Déjà view TBT or not TBT Mon, 03/12/2018 - 02:36 Permalink

Using U.S. tech...with a little help from their friends...


Who Can Control Israel’s Arms Dealers?

Israel operates similarly, though the arms trade is a much larger part of its total economic activity. The country’s main export is weapons, ranking it as the sixth largest arms seller in the world by volume but number one as a percentage of its overall economy. As in Turkey and the U.S., the business is largely run by retired senior officers. Unlike Turkey and the U.S., there have been a number of scandals connected to Israeli weapons development and sales, including the arrests of Israeli weapons dealers in Latin America and Africa. There has also been illegal activity relating to the sale of restricted technology. The Israelis sold the F-16-derived avionics of the Lavi jet fighter that it was developing with U.S. funding to China, which then produced its own version, while the electronics of the U.S. Sidewinder air-to-air missile also went to Beijing, enabling it to produce a clone called the PL-8. The PL-8 was later sold by China to Saddam Hussein’s Iraq.


In reply to by TBT or not TBT

Yen Cross Mon, 03/12/2018 - 01:10 Permalink

  If you gals and guys want to watch some really good "Shadow Puppet Theater" over the next year.

  Stay tuned to Russia China relations. The Russians and Chinese HATE each other.

 They just play nice because they share the same " kitty box". [borders]

  Russia is a massive land mass full of riches that China would love to control, if not for mountains and weather.

 There's many very beautiful women with Asian features, in south eastern Russia.

 Eastern European/Asian women are beautiful!

TeethVillage88s Yen Cross Mon, 03/12/2018 - 01:18 Permalink

Call 0147-Sechs-Sechs-Sechs-Ocht-Ocht-Ocht for Merkel's German Blonds in Tight Short-Shorts for your escort tonight in China.

- China, Israel, Germany, France, Nederlands, USA... what ever

- Land of Frontiers where we scam your Youth, Steal your money and make you into slaves, debt-slaves, trafficed European Slaves, or just a stupid peasant

- Yes, Silk Road is part of the new Red Light District Investment, Micro-brews, Glass Windows, & Sex Shops, the new China

In reply to by Yen Cross

MusicIsYou Mon, 03/12/2018 - 01:15 Permalink

Gee aren't you folks just excited about the future? I mean, you get up working all day, and saving, investing, and doing it for no particular reason, because you're fcking doomed from the massive global war that's coming fast.

MusicIsYou Mon, 03/12/2018 - 01:25 Permalink

Let me sum it up for you. President Xi just became the permanent leader of China because that was China taking a huge step to a war footing. And now they just followed it up with the biggest defense budget in 3 years. If you don't know by now war is coming, you're a complete moron.

RedBaron616 MusicIsYou Mon, 03/12/2018 - 06:57 Permalink

No, it is just what single-party run countries do: Worship a leader in lieu of God.  Having an Emperor for a ruler does not make war easier. In fact, having one leader can lead you to massive blind spots. Both Stalin and Hitler proved that. Stalin purged his generals, which almost did him in if we hadn't rushed massive military supplies his way. Hitler managed to decide to fight a two-front war and we know how that turned out. A single leader is dangerous because any criticism is muted. What that means is they think of themselves as infallible. Then they fall.

In reply to by MusicIsYou

Harry Lightning Mon, 03/12/2018 - 01:44 Permalink

1) The US still spends more than three times as much on its military as the Chinese, and China uses its military in large part as a means to provide employment in a country where opportunity is scarce for young men in most of the country.

2) There is no evidence whatsoever that trade wars lead to hot wars. For the US, the only time that happened in its history was during the lead-up to the Civil War. In fact, a trade war with China now would reduce the ability of China to engage in a military confrontation, since the money they spend on their military is in large part financed by the huge trade surplus they enjoy with the US. Stop the flow of export profits into China and they will be forced to reduce their military budget.

3) Regarding retalliatory actions from countries whom the US puts up tariffs, anything that reduces the amount of trade between the US and countries that enjoy a trade surplus with the US winds up accruing to the favor of the US. When a country is losing hundreds of billions of dollars every year with a trading partner, that country stands to gain if it reduces trade with the profiting country.

Iggby Harry Lightning Mon, 03/12/2018 - 01:56 Permalink

I'm inclined to agree with Harry on this one.


There is a historical precedent for Trade Wars leading to hot wars on different occasions but there are just as many instances where trade war (tariffs) did not result in hot war or even warm war.


Virtually every developed country on the planet is executing its right to tariff imports in a selective and biased manner against certain countries. 


The US is *relatively* open when it comes to trade and tariffs. Targeted increases on tariffs for certain items from certain countries stands only to strengthen the US's position against countries we run a significant deficit against.


That being said, we should be targeting Canadian and Mexican steel as well. 


In reply to by Harry Lightning

lolmao500 Mon, 03/12/2018 - 02:00 Permalink

You guys do know that China's military budget doesnt include lots of stuff that are included in the US defense budget uh?

Like soldiers salaries, pensions, research and development of new weapons... I bet China/US budget is about the same in PPP terms.

L Cornelius Sulla lolmao500 Mon, 03/12/2018 - 12:03 Permalink

The Purchasing Power Parity observation is spot on.  In addition to the absence of rear echelon, overhead and development expenditures in the Chinese budget, China's PPP GDP is virtually equal to the US' GDP.  Accordingly, a $200B Chinese defense budget actually equals or exceeds the value of US defense expenditures (even if we add back in Department of Energy nuclear R&D).  While direct conflict with China is reasonably unlikely in the short term absent a gross miscalculation by both parties, when (not if) the Chinese reach the tipping point in maintaining a qualitative and quantitative advantage in the region over what we can project there, they will become notably more aggressive. 

In reply to by lolmao500