CHINA : THREAT TO SOUTH EAST ASIAN'S SECURITY?

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Defence Expenditure (Con't)

China’s defence spending is low in terms of both relative proportions and absolute terms. Defence spending accounted for 5.6% of the GDP in 1979 but dropped to only 1.3 % in 1994. This compares favorably with 4.2 % for US, 3.6% for UK and 3.18 % in France. China’s defence spending was 9.5% of the national spending in 1994 as compared to 18.9% in US, 9.64% in UK and 13.6% in France10. It’s military expenditure as a percentage of it’s GDP and national spending  is  therefore steady and lower than other developed Western countries.

Research has indicated that increase in defence expenditure is due to the rate of increase in GDP and arms import will tend to rise if GDP rises as the nation becomes richer. Increased defence expenditure do not necessarily indicate arms purchases. Arms purchases alone do not signify offensive acquisitions and offensive acquisitions need not represent any impending hostility11. By just estimating China’s defence expenditure separated from it’s national military strategy, doctrine and concepts of operations is of limited value in understanding Beijing’s defence priorities and capabilities. The margin of error remains too great for any meaningful conclusions12.


10.   Xinhua News Agency (Beijing), “China White Paper - November 1995”, 16 November 1996.

11.  Bunn Nagara, “The Notion of an Arms Race in the Asia-Pacific”,  Contemporary Southeast Asia, vol. 17, no. 2, September 95, p. 194.

12.  Paul H.B.Godwin, “PLA incorporated, Estimating China’s military expenditure”,  in  Chinese Economic Reforms, The Impact on Security, edited by Gerald Segal and Richard H. Yang (London and New York : Routledge, 1996).

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Home ] Introduction ] Projected Theats & Regional Implications ] Defence Budget 1 ] Defence Budget 2 ] [ Defence Budget 3 ] Military Capabilities 1 ] Military Capabilities 2 ] Military Capabilties 3 ] Modernisation of PLA1 ] Modernisation of the PLA2 ] Modernisation of the PLA3 ] Modernisation of the PLA4 ] Modernisation of the PLA 5 ] China's Intentions1 ] China's Intentions2 ] China's Intentions3 ] China's Intentions4 ] China's Constraints1 ] China's Constraints2 ] China's Constraints3 ] Balance of Power ] Asean Strategy ] Conclusion ] Bibliography ]
 

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