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What Does China Really Spend?

May 26, 2006—China’s published data shows it has, over the past 10 years, steadily increased its defense spending from just under $10 billion in 1996 to around $30 billion in 2005. Military analysts believe the true numbers are far greater. Even low estimates peg the growth rate at almost three times greater than Beijing admits. For 2006, China has said it will spend about $35 billion, a 14.7 percent increase over 2005. However, according to the Pentagon’s annual report to Congress on China’s military power, the real number likely will be somewhere between $70 billion and $105 billion. And, much of this growth is going toward strategic projection forces.
 
 
Source: DOD’s “Annual Report to Congress: Military Power of the People’s Republic of China 2006.”