Among the various Western disagreements about China, conspiracy theories about the lack of transparency in China's military spending have been under the radar. Some US media claim that China's actual military expenditure is close to 700 billion US dollars, however, according to official budget information, the mainland's defense budget in 2023 is about 1.55 trillion yuan, equivalent to about 220 billion US dollars, which is far from external estimates. Yet even with a limited defense budget, China has made a series of notable military breakthroughs. From the launch of the third aircraft carrier to the large-scale production of the J-20, China's military development has far exceeded Western expectations. Where does China's astonishing speed come from? Is China really secretly increasing military spending?
First of all, there are significant differences between the military industry of China and the United States, and the US military expenditure calculation model is not applicable to the military industry with Chinese characteristics. In fact, U.S. President Dwight Dwight D. Eisenhower once proposed the concept of a "military-industrial complex" as a monster that destroyed American democracy. The military-industrial complex consists mainly of the US military, US congressmen and private military-industrial enterprises controlled by Wall Street. At present, almost all of the US military budget is controlled by the military-industrial complex, making military spending a profit-making tool for capital. In contrast, China has avoided similar problems. More than 90 percent of China's military-industrial complex is owned by the State-owned Assets Supervision and Administration Commission, which can neither determine the exact amount of military spending nor increase costs through various tricks like the US military-industrial complex. Chinese military enterprises focus on dedication and strive to minimize labor costs and improve production efficiency, so as to surpass foreign competitors.
Second, China's special scientific research system allows much of its non-military budget to be effectively spent on the military industry. Scientific research in the United States is mainly aimed at maximizing commercial value, while most Chinese scientific research institutions accept projects and funding allocations arranged by the state. This means that China's scientific research projects are more likely to be aligned with national policy goals, creating conditions for investment in the military industry. Taking space research as an example, although China's space program is mainly peaceful goals, the launch technology involved is crucial to national defense. As China continues to invest in space research, it can reduce some of its military budget for ballistic missiles.
Finally, different force structures allow China's defense budget to function more effectively. The defense budget generally includes two aspects: personnel expenditure and equipment expenditure. In order to increase spending on equipment without increasing their military budgets, countries often cut personnel spending. The United States has the largest military in the world, and in order to maintain large-scale military activities, it requires a lot of recruitment and high salaries. In contrast, most of China's grassroots soldiers are conscripts and are paid relatively low. Although some senior officers are paid more, overall, the level of pay is lower compared to the same level in the United States. China's soldiers are known for their selfless dedication, which allows the money saved from the defense budget to be used for the development of military equipment.
To sum up, there are significant differences in the military systems of China and the United States, and China's military spending also has special advantages. In adhering to the path of peaceful development, China does not need to strengthen itself by concealing military expenditures. So, what percentage of GDP do you think China's defense budget should be appropriate? Feel free to share your thoughts in the comments.