But there is even more Chinese military spending that the adjusted figure fails to account for. China’s official defense budget excludes its paramilitary forces that can be deployed in a conflict, China’s militarized coast guard, and foreign weapons purchases—and probably also excludes extensive
military-civilian fusion. The most glaring difference is in research, development, testing, and evaluation (RDT&E), for which the U.S. military budgeted roughly $100 billion in 2021. China claims its RDT&E costs are included in its equipment budget, but this is unlikely given the massive investment needed for Chinese advances in aircraft, warships, and other capabilities over the last several decades. In China, most of these items come out of other budgets.