How China Lies about their ACTUAL Military Spending

Summary

This video analyzes China’s military spending and its strategic investments in defense. It challenges official figures by estimating China’s actual defense budget to be much higher than reported, potentially surpassing $540 billion. The video explores China’s growing focus on equipment procurement, including naval power, hypersonic weapons, and munitions, while reducing personnel costs. The comparison with U.S. defense spending highlights China's aggressive buildup, even though its military technology lags behind. The video raises questions about the true scale of China’s military spending and its effectiveness in strengthening its global position.

Takeaways

• 😀 China's military R&D spending is likely much higher than the official $45.8 billion estimate, considering hidden contributions from cyber espionage and military-civil fusion.
• 😀 The American Enterprise Institute (AEI) argues that China's actual military expenditure exceeds publicly reported figures, possibly reaching $549 billion, more than double the claimed $229 billion.
• 😀 China has been focusing on bolstering its military capabilities by reallocating resources away from personnel and toward equipment procurement, leading to a significant increase in military spending.
• 😀 Since the 1990s, China has reduced its military personnel, allowing for a strategic shift toward naval and air power, including the development of hypersonic weapons and a large stockpile of munitions.
• 😀 Despite China's spending on military equipment growing faster than its GDP, its military technology is considered by some to still be two generations behind the U.S.
• 😀 The growth of China's military equipment spending has been impressive, with a rate of over 10% annually, much faster than the U.S. defense procurement budget.
• 😀 China's military budget, when adjusted, is approximately 75% of the size of the U.S. Department of Defense budget, illustrating its true purchasing power.
• 😀 While U.S. defense spending is transparent, there are concerns about corruption and hidden spending within its own defense budget, similar to China's.
• 😀 The U.S. defense budget includes foreign aid, which accounts for a significant portion of its overall expenditure, unlike China's comparatively small foreign aid budget.
• 😀 There is debate over the accuracy of estimates for China's military spending, with some analysts suggesting that AEI's estimates may be exaggerated to influence U.S. defense policy toward China.

Q & A

How might China's military R&D expenditures be underestimated?

China's military R&D expenditures may be underestimated due to cyber espionage and military-civil fusion, which enhance China's technological capabilities at potentially lower direct costs.

What role do military-civil fusion and cyber espionage play in China's military buildup?

Military-civil fusion and cyber espionage allow China to gather technology and research secrets from other countries, especially the U.S., contributing to its military buildup without fully accounting for the associated costs.

How has China adjusted its military spending strategy since the 1990s?

Since the 1990s, China has reduced the number of military personnel, reallocating resources towards equipment procurement, which has allowed for significant investment in advanced military technologies and a massive naval buildup.

What impact has China’s reallocation of resources had on its military capabilities?

This strategic reallocation has enabled China to significantly increase its investment in military equipment, particularly in naval and hypersonic weapons, resulting in a more advanced and modernized military.

How does China’s military equipment spending compare to its GDP growth?

China's military equipment spending has grown at an annual rate of over 10%, much faster than its real GDP growth, which has allowed for accelerated military expansion.

What does the rapid increase in China's military equipment spending indicate?

It indicates China’s focus on bolstering its power projection capabilities, particularly in naval and air power, and demonstrates a clear priority in modernizing its military.

How does China's military spending compare to the U.S. defense procurement budget?

China's military equipment budget has grown six percentage points faster annually than the U.S. defense procurement budget, highlighting its increasing focus on military modernization.

What does the U.S. defense budget include that makes its actual spending even larger than often reported?

The U.S. defense budget also includes substantial foreign aid, which amounts to $65 billion, compared to China's $3 billion, further emphasizing the scale of the U.S. defense spending.

What is the significance of the estimated $549 billion figure for China’s military spending?

The $549 billion estimate suggests that China’s actual defense spending is significantly higher than its reported $229 billion, potentially explaining its rapid military buildup and capabilities.

What is the controversy surrounding the American Enterprise Institute's (AEI) estimate of China's military spending?

The AEI's estimate of $549 billion is higher than many other analysts’ estimates and is suspected by some to be exaggerated, possibly to influence U.S. defense policy and increase military-industrial spending.