The independent resource on global security

Expert Comments

5 Mar. 2012: China increases defence budget for 2012 by 11.2% to 670.3 billion Yuan

Dr Sam Perlo-Freeman

This increase continues the long-term rise in China's military spending, in line with its rapid economic growth. However, given China's relatively high inflation, which was 4.5% in February, it is likely that the real increase will be below China's GDP growth rate for the third year running. It would seem that the USA's increased military focus on the Asia–Pacific and recent tensions over the South China Sea have not led to any new or unexpected acceleration of China's military spending trend.