China Increases Military Spending to Focus on High Tech By ERIK ECKHOLM
BEIJING, March 6 — China is increasing military spending this year by 17.6 percent, or $3 billion, bringing the publicly reported total to $20 billion, the finance minister announced today.
In a report to Parliament on the budget for 2002, the minister, Xiang Huaicheng, said continued large increases in defense spending were needed for China's military "to utilize modern technology, especially high technology to raise our army's defense and combat capabilities," and to raise salaries for the country's 2.5 million officers and enlisted men.
The jump in spending follows follows many years of double-digit increases, reflecting China's effort to upgrade its oversized, mostly outdated forces and to attract better educated men into a military that has suffered from low morale.
The publicly revealed figures do not include major spending for weapons research and for the purchase of foreign weapons, like the two Russian-built naval destroyers China acquired last year. Actual military spending may be three to five times the reported total of $20 billion, according to Western experts.
China is believed to spend more on the military than any other Asian country, but even the higher estimates are well below American spending levels and the American technological advantage may, if anything, be growing, according to some experts. The Bush Administration has proposed a $379 billion defense budget for the next fiscal year.
Central Government spending overall will increase by 10 percent in the year ahead, including an expanding deficit that officials hope will help prop up economic growth during the global slowdown, Mr. Xiang said today. He promised a 28 percent increase in spending on living allowances for the unemployed, pensions, and other social security measures "in order to protect social stability."
Millions more farmers and workers in decrepit state industries are expected to lose their jobs in the years ahead as China further opens its markets to global competition within the rules of the World Trade Organization.
nytimes.com |