China Defense Spending To Increase 11.2% In 2012

Since the early 1990s China has increased military defense spending by double digits in all but two years and 2012 will be no exception. The China government citing its unhappiness with the US military presence in the Asia-Pacific region have announced plans to increased military spending by 11.2% in 2012.

While that number may seem high it’s actually down from a 12.7% from 2010 through 2011.

Under the increase China will see spending upped to $106.4 billion.

While that spending may seem shocking China’s economy has rapidly grown over the last two decades and $106.4 billion is still just 1.3% of last years GDP. D

According to National People’s Congress spokesman, Li Zhaoxing:

“China is committed to the path of peaceful development and follows a national defense policy that is defensive in nature. You see, China has 1.3 billion people, a large territory and long coastline, but our defense spending is relatively low compared with other major countries.”

While that may be true some experts believe the country is spending far more than it claims on spending, the CIA estimated that China was spending 4.3% of its GDP in 2006. In comparison the United States spends more than $500 billion annually on defense spending.

China is under constant maritime disputes with Vietnam, Japan, and the Philippines with less than stellar relations in India. Because of those disputes and others a former Australian ambassador tells Bloomberg:

“China lives in a neighborhood where it doesn’t have any natural allies or friends.”

Among China’s biggest spending are home-built J-10 jet fighter, new nuclear submarines and modern surface vessels armed with supersonic anti-ship missiles. Chinese officials are also in the process of testing the new J-20 stealth fighter.

Do you think the Chinese government is hiding true spending numbers under military control in the region?