Military gets budget increase

March 5, 2007

China is expected to pass a defense budget at its annual parliament session that will increase military funding by 17.8% in 2007 to US$44.94 billion, state media reported. The proposed funds will go toward an increase in salary and allowances for servicemen and army retirees, along with improving the army's drilling and living conditions. It will also be used to upgrade military equipment and improve the troops' capability in information technology, according to Jiang Enzhu, spokesman for the Fifth Session of the Tenth National People's Congress. The announcement comes weeks after comments from US Vice President Dick Cheney, saying China's military build-up clashed with China's claims to be a peaceful power. China's military spending still falls short of developed countries; at about US$30.6 billion in 2005, it was equivalent to only half of Britain's defense budget, roughly two thirds of France's or Japan's, and merely 6% of US military spending.
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