From the washingtonpost.com article:
China announced Tuesday that it will again sharply increase its military spending this year, budgeting a 17.6 percent rise that is roughly equal to last year’s increase.
Disclosure of plans for a $59 billion outlay in 2008 followed a Pentagon report Monday that raised questions about China’s rapidly increasing military budget, and came less than three weeks before a presidential election in Taiwan, the self-governed island over which China claims sovereignty.
A Chinese government spokesman said the country’s decade-long military buildup does “not pose a threat to any country,” but he warned that relations with Taiwan were at a “crucial stage” and that the island would “surely pay a dear price” if it were to take steps that China viewed as a declaration of independence.
At the same time Taiwanese choose a president, they also will vote on a referendum issue asking whether the island should apply for U.N. membership under the name Taiwan.
China’s reported $59 billion budget is still a fraction of what the United States spends each year on its armed forces. President Bush last month requested $515 billion to fund the Pentagon in fiscal 2009, a 7.5 percent increase, plus $70 billion for the wars in Iraq and Afghanistan.
The United States has pressed China to be more open about its intentions as the scope of its military capabilities and pace of spending increase. At a Pentagon briefing Monday, David Sedney, deputy assistant defense secretary for East Asia, reiterated the U.S. view that China’s defense establishment still severely underreports total spending and has not been clear about its intentions.
“China’s military buildup has been characterized by opacity,” Sedney told reporters, and “by the inability of people in the region and around the world to really know what ties together the capabilities that China’s acquiring with the intentions it has.”
The Pentagon report said China’s near-term focus remains on preparations for potential problems in the Taiwan Strait. But China’s nuclear force modernization, its growing arsenal of advanced missiles and its development of space and cyberspace technologies are changing military balances in Asia and beyond, the report concluded.
Read the rest of the article here.