Estimating China’s Military Expenditures

Abstract

Rapid expansion of Asian economies has increased national funds available for government spending and enabled finances devoted to military spending to grow dramatically. Of particular concern for the national security of the United States is the military expenditure of China. A rising China poses a strategic challenge to the United States. China is modernizing its military and intends to become a significant power, prompting many analysts and policymakers to voice concern about the military intentions and potential of China. The sheer magnitude of China’s expenditures and the perception that it will be a peer competitor to the United States within the coming decades imparts added urgency to the need for better estimates of the nature and size of Chinese military expenditures.