The Chinese government announced prior to last month’s National People’s Congress that PRC defense spending would incre
ase another 11.2 per cent in 2012 to 670 billion yuan (U.S. $106 billion).This is a “minuscule” fraction of the nation’s economy, some diplomats and intelligence officers said.
“If you believe these official defense spending numbers, then you accept that the PRC are spending only about 1.4 per cent of their GNP on defense, which is just not at all realistic,” one diplomat said.
Reports of an impending Chinese purchase of Russian jets seem to confirm such suspicions. Read More
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