Annual double-digit increases continue as Beijing arms itself against regional disputes and greater US presence

This article is more than 8 years old

This article is more than 8 years old

China is to boost its defence spending by 11.2% in 2012, the latest in nearly two decades of double-digit increases each year.

Although the planned figure is less than last year's 12.7% increase, China's military leaders have said they are unhappy with recent moves by the Obama administration to increase the US military presence in the Asia-Pacific region.

Only twice since the early 1990s has the increase been less than double digits.

The National People's Congress spokesman Li Zhaoxing said China's defence spending would increase by 11.2% over actual spending last year to hit 670.2bn yuan (£67bn/$106.4bn) in 2012, an increase of about 67bn yuan.

China's official defence spending is the largest in the world after the United States, but actual spending, according to foreign defence experts, may be 50% higher as China excludes outlays for its nuclear missiles and other programmes.

Li, speaking at a news conference a day before the opening of the annual session of the congress, said China's military spending was small as a percentage of gross domestic product compared with other countries, especially America.

"China is committed to the path of peaceful development and follows a national defence policy that is defensive in nature," Li said. "You see, China has 1.3bn people, a large territory and long coastline, but our defence spending is relatively low compared with other major countries."

In 2011 military spending amounted to 1.2% of China's economy, Li said. By contrast the ratio stood at 4.8% for the US in 2010, according to the World Bank.

Beijing's robust defence buildup over more than two decades has transformed the military into a formidable regional force, increasingly able to project power far from China. While chiefly aimed at the US, the buildup is also concerning to India as well as Japan, Vietnam and the Philippines, which have maritime disputes with China.

Li repeated several times that China's intentions were peaceful and defensive. "China's limited military strength is aimed at safeguarding sovereignty, national security and territorial integrity and will not pose a threat to other countries," he said.

The Chinese military armoury includes the home-built J-10 jet fighter, new nuclear submarines and modern surface vessels armed with supersonic anti-ship missiles. In 2011 China began testing a new J-20 stealth fighter and launched sea trials of its first aircraft carrier, a refurbished hulk purchased from Ukraine. Cyber-warfare programmes are burgeoning.

The South China Sea has become a new potential flashpoint, with Beijing's more powerful navy and an assertive policy to defend contested claims to groups of islands, reefs and atolls. The US has declared its own interest in making sure sea lanes remain open.

Washington has moved to rotate more troops to Australia, shore up alliances with other traditional allies such as Japan and the Philippines and forge new military ties with Vietnam.