Well said Sir, but prb is for now we don't know the details of how much and from where the cutting is to be done. Their army is 1.6M strong, with 0.5M reserve. May be they cut some of the active force and add more reserves in it and divert the funds to either increase navy or air force or may inject money into modernization. With the population China has i don't think they have a prob in having numbers, its maintaining it and then with it upgrading it. Few years back one of our ex-president cum army chief did the same, he announced to cut the force by 50K and inject money in modernizing the current force, but when we indulged in this WoT, we were having prb in keeping force at our eastern border and simultaneously do COIN ops, at which time the number of army was increased to counter this deficiency.
And from what limited info i have on China, i don't think they have any aggressive designs in near future thus may be cutting their troop strength and i believe for now they have no enemy strong enough to invade into their land.