FairAndUnbiased
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The best use of the military budget would be for internal security. In other words, use $7.5 billion worth of the military budget and distribute this money as bi-weekly free welfare checks to the poor, uneducated areas of Xinjiang and Tibet. This would go to 5 million people, specifically the non-HAN Uighur and Tibetan minorities. The criteria would be that they were poor, low education and lived in contentious areas like southwestern Xinjiang. No money, aka "welfare" checks would go to monks, monasteries (they are already xenophobic and too far gone), wealthy or educated (they aren't the ones rioting).
This money would be like them getting almost a full year of salary (9400Y) doing nothing. It would buy China the time to develop in MORE relative peace until the day ALL Xighurs and Tibetans were rich and educated. Now that would be a good use of the military budget.
however the military budget is very useful for other things, and it is 100% necessary for government continuity in emergencies.