Thursday, February 16, 2012

China to Double Spending for 2015

According to IHS Research Center, the official Chinese military spending to double by 2015 and reach almost 240 billion dollars. Most of the additional funds will be spent on technical modernization.

Chinese tanks basic type 99th Despite the increase in military spending, most types of Chinese weapons are less able to combat than the equipment of the richest countries in the world. Chinese themselves assess the technological gap in relation to the U.S. military for 20 years .
Analysts IHS reported that China's military budget last year totaled 119.8 billion U.S. dollars. It's a bit more than the official figures of Beijing. Presented sum may, however, also include estimates of estimates of defense spending of other departments.
It was considered that the current high rate of economic growth in the PRC and the entire Asia Pacific region, will increase this expenditure at an average rate 18.7% (far greater than 12% of the last decade), leading to obtain the 2015 budget of 238.2 billion . Thanks to Beijing to consolidate second place in the world after the United States. Note that taking into account the real value of the yuan's purchasing power, not the exchange rate conversion, the Chinese may actually have more funding in 2015 than Americans, whose defense budgets will continue in the coming years, at the level of 600-650 billion dollars.
According to IHS specialists, Beijing will continue to reduce the size of its armed forces, in return providing them with increasing amounts of modern equipment. Reducing the number of soldiers may be associated with the need to reduce personal expenses. The increase in wages in the economy of a vital force also increases in the military, which begin to threaten their scale modernization plans.
The projected increase in Chinese spending will lead to that offset the 12 largest defense budgets in the region, including Japan and India. At the same time enhance the reinforcement of PRC reactions neighbors. Some of them because of financial constraints will not be able to reach of a significant increase in defense spending, some countries, including the already mentioned India and Singapore may, however, note the great success. In the case of the latter country's budget last year was the equivalent of 9.5 billion USD. In three years could reach $ 12.3 billion.


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