China has announced a trillion yuan military budget for the coming year at the annual National People's Congress. The move is "to make up for low military spending in the past," according to an official.
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Chinese Prime Minister Li Keqiang on Monday announced an 8.1 percent increase in defense spending in 2018, marking a sharp increase to the military budget compared to the previous two years.
In a budget report issued at the opening of parliament's annual meeting, the National People'S Congress (NPC), Chinese authorities said the defense budget will increase to 1.11 trillion yuan (€142 billion, $175 billion). However, it did not revise its projected growth target, which stands at roughly 6.5 percent.
China will "advance all aspects of military training and war preparedness, and firmly and resolvedly safeguard national sovereignty, security and development interests," said Li during the NPC.
"Faced with profound changes in the national security environment," the Communist Party must continue to provide absolute leadership to the military, he added.
The NPC is a largely rubberstamp parliament that approves decisions already made by the ruling Communist party.
NPC spokesperson Zhang Yesui said that despite the increase, defense spending as a share of GDP is lower in China when compared to other global players, reported state-owned Xinhua news agency.
While China's military budget is the second-largest in the world after the US, defense spending stands at roughly 2 percent of GDP. That is significantly lower than Russia and the US, which spend 5.3 percent and 3.3 percent of GDP on defense respectively.
"A large part of the growth of the defense budget is to make up for the low military spending in the past and is mainly used to upgrade equipment and improve the welfare of servicemen and women and the living and training conditions of grassroots troops," Zhang said.
'Significantly higher'
However, with the rise of China as a more assertive actor in the international community, analysts have questioned its military ambitions and cast doubt on its official defense spending figures.
"Although China provides official estimates of defense spending each year, outside estimates of China's defense budget are often significantly higher than Beijing's official numbers," said a report published by the Washington-based Center for Strategic and International Studies earlier this month.
"China provides limited information on the distribution of its military spending, which obscures spending patterns that may indicate … how China might be responding to perceived threats and where China is investing in new technologies."
Satellite images show the extent and speed of China's land reclamation activities in disputed waters of the South China Sea. The new land masses are believed to be primarily military installations.
Image: CSIS Asia Maritime Transparency Initiative/DigitalGlobe
Runway
China is expanding the construction of its facilities on Fiery Cross Reef. Provided by the Asia Maritime Transparency Initiative (AMTI), this June 28, 2015 photo reveals Beijing has nearly completed a 3,000 meter (9,800-foot) airstrip, long enough to accommodate most Chinese military aircraft. Two helipads, up to 10 satellite communications antennas, and one possible radar tower are also visible.
Image: CSIS Asia Maritime Transparency Initiative/DigitalGlobe
Expansion
Reclamation on Fiery Cross Reef, which lies on the west side of the Spratly Islands, began in August of 2014 and its principal landmass was finished by November. Dredgers have created a land mass that spans the entire existing reef and is approximately 3,000 meters long and 200-300 meters wide.
Image: Reuters//U.S. Navy
Facilities
This picture taken last November shows construction work being carried out on Fiery Cross Reef. The reef reportedly already houses a helicopter landing pad, a 300-meter-long wharf, a harbor large enough to dock military tankers, barracks and artillery emplacements.
Image: CSIS, IHS Jane's
South Johnson Reef
This reef was one of the first facilities to finish principal land reclamation. This recent picture shows that a radar tower is nearing completion at the north end of the land mass. According to AMTI, a new large multi-level military facility has been built in the center of the island. Up to six surveillance towers are being constructed alongside four possible weapons towers.
Image: Asia Maritime Transparency Iniative
A naval base?
Beginning in early 2015, Mischief Reef - also located in the Spratlys - has undergone extensive reclamation activity. Experts say that the recent widening of the southern entrance to the reef, coupled with sightings of Chinese navy vessels, may suggest a future role for the reclaimed reef as a naval base. Taken on March 17, this image shows a chain of small land formations at the reef.
Image: CSIS Asia Maritime Transparency Initiative/DigitalGlobe
From reef to island
Significant construction on Gaven Reef began in 2014, with a total of 114,000 square meters of land already created. Satellite pictures show just how fast construction has progressed on the reef. A new artificial island was created between March (left) and August (right) 2014.
According to AMTI, China has had a troop garrison on Gaven Reef since 2003, which has included a large supply platform where ships can dock. Experts say a new main square building in the reef appears to be an anti-aircraft tower.
Image: AMTI
A standardized process
As seen in this image, the basic process of expanding these features involves dredging sand from the seafloor and dumping it onto the reefs. The structure is raised above the high water line, hiding the status of the bank or reef beneath. The sand is then smoothed out and workers surround the island with a concrete barrier to protect against erosion and storm surge, and begin construction.
Image: CSIS
'Historic rights'
China claims most of the potentially energy-rich waterway, through which $5 trillion in ship-borne trade passes every year. The US Pacific Fleet commander recently said China was "creating a great wall of sand" in the South China Sea, causing serious concerns about its territorial intentions. Beijing argues it is asserting its so-called "historic rights" to maritime resources in the area.
Image: DW
Territorial disputes
The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have overlapping claims, which have led to territorial disputes in the area. Last summer, China's deployment of a massive oil rig in waters also claimed by Hanoi escalated tensions in the region, sparking a standoff at sea and violent anti-Chinese demonstrations in Vietnam.
Image: picture alliance/AP Photo
US concerns
Washington is concerned China's efforts carry a military dimension that could undermine the US' naval and economic power in the Pacific, and has weighed sending warships and surveillance aircraft within 12 nautical miles of the new artificial islands. Washington has repeatedly called on Beijing and others to end reclamation projects in the disputed waters, but Beijing rejects those demands.
Image: Getty Images/AFP/M. Abbugao
Ecological impact
The Philippines filed a formal plea at the UN last year, challenging Beijing's territorial claims. Manila said China's reclamation activities are causing "irreversible and widespread damage to the biodiversity and ecological balance of the South China Sea." It also claimed that the destruction of coral reef systems is estimated to cause economic losses valued at $100 million annually.