Procurement: June 4, 2004


Chinese defense spending was estimated (by the U.S. Department of Defense ) to have gone up seven percent in 2003. The exact size of the Chinese defense budget is hidden by government accounting practices that hide military expenses in many different parts of the government budget. But American defense analysts estimate that current Chinese defense spending is somewhere between $50-70 billion. This puts it third, world wide, behind the United States at over $400 billion, and Russia, at $70-80 billion. China has been spending a lot of money on buying high tech weapons and military technology from Russia. In 2003, China spent a billion dollars to buy 24 Su-30 warplanes, the most advanced military aircraft Russia produces. China also spent $500 million on Russian SA-20 Surface-to-Air missiles, radars and related equipment. China is spending a lot of money trying to develop its own advanced military technology for tanks, warships and aircraft. China has also invested heavily in military satellites, putting two spy satellites in orbit last year. If China continues spending at this rate, they will a major military power in 10-15 years. China has carefully studied American experience with high tech weapons and equipment, as well as the innovative U.S. training methods. China is trying to replicate all of this, as well as coming up with effective countermeasures to American military advantages.


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