The recently concluded session of the National People’s Congress brought news of another double-digit boost to China’s official defense budget. While the 14.9% increase is a little less than the 17.6% rise in 2008, it is still substantial, especially in view of the looming economic difficulties and improving relations with Taiwan. Although the official line is that the money will go mainly for raising the living standard of troops, Premier Wen Jiabao in his speech highlighted the need for the continued buildup of the armed forces, which will presumably absorb much of the increase.
This fits with the existing trend of more than a decade, as the Chinese armed forces have been undergoing an intensive buildup that has substantially increased their combat capabilities. Although these capabilities had plummeted drastically during the Maoist period, no concerted modernization drive--primarily to acquire new weapons--was launched until after the Taiwan crisis of 1995/96, because the Chinese had perceived no strategic military threat to their security.
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