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Slowing economy will not limit China's military budget

Wednesday, February 25, 2015


It will almost certainly be the largest in the country's history, perhaps as high as 150 billion dollars. It is increasingly apparent that Chinese military expenditures are divorced from economic growth. With defence spending less than 2% of GDP, Beijing may feel that the economy can absorb a greater burden.


  • Greater Chinese military budgets could spur China's neighbours to increase their own, initiating a destabilising arms race.
  • China's military aggrandisement encourages its neighbours to align more closely with Washington, exacerbating China-US competition in Asia.
  • Growing military expenditures and new arms acquisitions do not necessarily make conflict more likely, but would make it more lethal.

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