China’s defence spending in 2017 to rise around 7 per cent

The nearly seven per cent increase could be China’s slowest defence budget rise in at least a decade, marking the second time for the defence budget increase to dip into the single digit since 2010, state-run Xinhua news agency reported.

Last year, China increased its defence spending by 7.6 per cent, allocating about 954 billion yuan (around USD 143.7 billion).

A year before that, China increased the defence spending by about 15 per cent as part of its efforts to modernise the world’s largest military of 2.3 million troops.

China’s announcement to increase defence spending comes after US President Donald Trump vowed a 10 per cent increase in America’s military spending of about USD 600 billion.

Much of China’s budget this year was expected to go for the development of navy as the second largest economy looks to expand its influence beyond its shores.

China’s claims in the South China Sea and East China Sea have caused a lot of concern in the region.

China currently has one aircraft carrier and is building another. Chinese defence officials say that the third is also in the pipeline to match the growing strength of US navy in hotspots like the disputed South China Sea.

“China’s military capacity building will be continued. This is the requirement for safeguarding our national sovereignty and security,” Fu told media.

She said China’s defence budget accounted for 1.3 per cent of the country’s GDP, compared with NATO members’ pledge to dedicate at least two per cent of GDP to defence.

“You should ask them what their intentions are,” Fu told reporters, adding that China has “never inflicted harm on other countries.”

“Of all the conflicts and wars in the world that have killed and displaced so many people and caused significant losses of property, which one is China to blame for?” she asked.

On China’s disputes with neighbouring countries, Fu said China advocates dialogue and peaceful solutions in addressing those issues.

“We call for a peaceful settlement through dialogue and consultation (of the disputes). But at the same time, we must also have the capability to defend our sovereignty, our rights and interests,” Fu said.

“In particular, we must guard against outside forces from interfering with such issues,” Fu said.

“How can China protect millions of overseas Chinese and huge amounts of overseas investment and projects worth billions of US dollars without a powerful navy?” Chu asked.

“The global security situation has worsened in recent years, and China has conducted several successful evacuation missions for Chinese nationals, such as in Libya and Yemen, and such missions require the PLA navy to have reliable capability on a global scale,” Chu said.

Additionally, China is currently the world’s largest trading nation, so the country is heavily reliant on free trade, and the world also needs to trade with China, Chu said.

The report, citing China National Radio, said China’s overseas investment in 2016 has reached USD 221 billion, surging 246 per cent compared with 2015.

“So the Chinese navy has to gain enough ability to protect those key trade routes around the globe,” Chu said.

Song Zhongping, a military expert who used to serve in the Second Artillery Corps, now called the Rocket Force, said Chinese military has not reached high standards set by President Xi Jinping.

Xi has set higher standards for the People’s Liberation Army (PLA), and “honestly, the Chinese military hasn’t met some of those standards yet, and that’s why we have military reform and the budget for national defence will continue to rise,” he said.

“For example, the 21st Century Maritime Silk Road, as part of the One Belt and One Road initiative, requires a large and advanced navy, because this ‘Road’ covers the Pacific Ocean, Indian Ocean and the Mediterranean,” Song said.

Yin Zhuo, a rear admiral and a senior researcher at the PLA Navy Equipment Research Centre, told China Central Television that in order to protect China’s sovereignty and national interests, the PLA navy at least needs five to six aircraft-carriers to maintain presence in specific regions.’

Currently China has one aircraft carrier and building another one with plans for the third.

In addition, an anonymous PLA air force officer said, “due to the US’ ‘Pivot to Asia’ strategy since the Obama era, the possibility of military conflict is increasing in the Asia-Pacific region, including the Korean Peninsula, Taiwan Straits, and East and South China seas, so there is no reason for us not to increase the defence budget.”