The official defense budget omits a lot of defense- related expenditures, including acquisition of foreign weapons, much defense-related R&D, pensions, and support provided to the military by local authorities,” said Phillip C. Saunders, a research fellow at the National Defense University’s Institute for National Strategic Studies in Washington. “As a result, it significantly understates actual defense spending.”
Defense spending accounts for less than 2 percent of China’s gross domestic product, compared with almost 5 percent in the U.S. China’s defense spending increased an average of 16.2 percent a year from 1999 to 2008, according to figures from a defense white paper published in 2009. The biggest increase was 20.4 percent in 2006.
I had previously tried to project the future defence budgets for China and the United States from 2009-2040
Estimate of Defence Budgets for China and the USA in Billions
Official Defence Budget Forecast Based on Fixed Percent of GDP
GDP Forecasts in Trillions of US Dollars
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