China’s defence budget shoots up to $100 billion
China to increase defence spending by 11.2% in 2012. Thus China will for the first time take its annual military expenditure beyond $100 bn. The objective of this is to modernize its Army against the milieu of a vague regional environment. The planned defence budget is declared as $106.39 billion (670.274 billion Yuan).
- Thus there was an increase of 67.604 billion yuan over the expenditure in 2011 and an 11.2% per cent year-on-year rise.
- This proposed budget will be more than 3 times India’s defence expenditure of $36 billion in 2011-12 budget.
- As per Analysts the main focus of China’s military spending is directed towards deployments:
- In the South China Sea – where disputes have surfaced with many of China’s neighbours
Against the increasing U.S. activity in the Asia-Pacific
Towards Taiwan, which has historically been the PLA’s (People’s Liberation Army’s) focus but has started to retreat as a priority with the recent warming in Cross-Strait relations.