At the start of December, we saw construction photos of the first Chinese aircraft carrier. Weeks later we learned that China had built an "aircraft carrier killer" missile. In January we saw photos of China's new stealth fighter.

Now it's official.

China is hiking military spending by 12.7% next year, returning to double digit growth seen before the recession.

Although Beijing spends far less than Washington on defense, China's military is just sitting there and growing. Premier Wen Jiabao says this militarization is for defensive purposes. It's enough to frighten regional neighbors, like India, which will increase its own military spending by 12%.