China to return to double-digit rise in defence spending in 2011, says it's no t

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China to return to double-digit rise in defence spending in 2011, says it's no

threat

By Bodeen, The Associated Press | The Canadian Press – 20 minutes

ago

BEIJING, China - China will boost its defence spending by 12.7 per cent this

year, a legislative spokesman said Friday, while reiterating that Beijing's

return to double-digit military budget growth after a dip in 2010 is not a

threat to other countries.

China's defence buildup and military plans in recent years have alarmed its

neighbours and the United States, where military and political leaders have

spoken about a lack of transparency and co-operation in the process.

The increase to just over 601 billion yuan ($91.5 billion) would go toward

" appropriate " hardware spending and salary increases for the 2.3 million members

of the People's Liberation Army, spokesman Li Zhaoxing told a news conference in

the Great Hall of the People, the seat of the legislature.

Chinese media reports say members of the PLA, the world's largest standing

military, will receive raises of up to 40 per cent his year, their third pay

increase in six years.

The announcement comes a day ahead of the opening of the National People's

Congress, where the country's social and economic goals will be laid out for the

next five years amid lower growth targets and concerns about inflation and asset

bubbles.

The increase is up from the 7.5 per cent forecast in 2010, which broke a string

of years of double-digit growth as China transformed its military into a more

modern force as its economy boomed to become the world's second largest. The

rate of increase peaked at 17.8 per cent in 2007.

Li said the defence budget accounted for just 6 per cent of China's national

budget and less than 2 per cent of its gross domestic product, a lower figure

than in other countries.

" The government has always tried to limit military spending and it has set the

defence spending at a reasonable level to ensure the balance between national

defence and economic development, " he said.

Li, a former foreign minister, said China's spending plans are transparent.

" This will not pose a threat to any country, " he said.

But China's assertive behaviour — it sent navy vessels and military aircraft

closer to Japanese territory last year than ever before — magnifies the

perceived threat from its growing defence spending. India, which has border

disputes with China, has also voiced concern about China's military.

Sea incidents involving the Chinese military and fishing boats are also common.

Just this week, the Philippine military deployed two warplanes near a disputed

area in the South China Sea after a ship searching for oil complained it was

harassed by two Chinese patrol boats, Vietnam protested Chinese military drills

in a group of islands that both countries claim, and Japan scrambled F-15

fighter jets after Chinese surveillance and anti-submarine aircraft flew into

airspace near disputed islands in the East China Sea.

China's military budget is dwarfed by what the United States spends every year,

but its actual spending, including funding for new weapons and research and

development, is believed to be as much as double the official figure.

The bigger budgets fed by rapid economic growth have allowed China to speed up

development of new technologies such as the J-20, a stealth fighter jet. China

also is moving toward launching its first aircraft carrier — though it will take

years to learn how to operate it — along with sophisticated new submarines and

larger surface ships.

Ni Lexiong, a defence expert at Shanghai University of Political Science and

Law, said China needs to increase its defence spending in response to closer

military co-operation between the U.S., Japan, South Korea and other countries

in the region.

He said Beijing also needs to spend more on its military to deal with threats to

its citizens and property overseas. Last month, Beijing took the unprecedented

step of sending military transport planes and a navy missile frigate to help

evacuate 32,000 Chinese from strife-torn Libya.

High inflation, especially for food, and the need to buy supplies on the open

market further justify higher military spending, Ni said.

China's latest five-year plan, which will be approved during the legislature's

annual 10-day meeting, is expected to feature a shift from rapid economic growth

to slower development that is of higher quality and more sustainable, with a

greater emphasis on services and broader distribution of wealth.

Li promised unspecified measures to tame inflation, which hit 4.9 per cent in

January. He blamed price rises on a range of factors, including higher global

commodity prices, speculation and media hype.