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Surpassed already.What is this in PPP numbers? Considering that China's PPP GDP is fast approaching that of the Americans.
We need a defence budget at 3% of GDP, and the future increased part should put to R&D and equipment.
The technology from military R&D can be transfered to civilian application. It will not be a burden to economy.
China's military spending exceeded $145 billion last year as it advanced a program modernizing an arsenal of drones, warships, jets, missiles and cyber weapons, the Pentagon said on Thursday, offering a far higher figure than Beijing's official tally.
The Pentagon's estimate, using 2013 prices and exchange rates, was 21 percent above the $119.5 billion figure announced by China. It was detailed in an annual report to Congress that cited steady progress in Chinese defense capabilities.
It acknowledged that estimating Chinese spending can be difficult, in part because of "poor accounting transparency and incomplete transition from a command economy."
China's Defense Ministry, in a statement on its website, said it was "resolutely opposed" to the Pentagon report.
Chinese military spending exceeds $145 billion, drones advanced: U.S.| Reuters
In China, R&D expense is not counted in defence budget
When i look at all the numerous military equipment programmes in China............its clear that despite lower costs in that country, China must be spending more money than they announce publicly on their defence. I mean its become almost a game each year in March when China announces its defence budget......because the figure can be guessed by most military enthusiasts, as the yearly increase is between 7.5-10%.
Some Chinese, think they dont spend enough..........but if it came down to it, the Chinese are the only ones with any real money reserves these days, and could easily increase their military spending by a large margin.........if the need was ever reqd!
What is this in PPP numbers? Considering that China's PPP GDP is fast approaching that of the Americans.
PPP is meaningless. It is useful only in measuring services (haircut, e.g).
Most of China's military is produced domestically and all Chinese soldiers are paid in domestic currency. A $5000 salary for a Chinese grunt is equivalent to a $25000 American one.
Labor is a small percentage in the manufacturing process. The material you use to make the weapons, such as steel, etc... and running expenses such as petro are all traded internationally and hence, cannot be calculated with PPP. That's why PPP is meaningless unless you measure services, such as haircut, which cost less in China than the US. A barrel of crude cost just as much in China as the US.
You have it backwards. The raw materials/commodities cost is a small percentage of the total cost when it comes to complex military components. It's the labor and manufacturing processes that are more expensive.
Take the F-35B's aluminum bulkhead as an example. Does anyone want to argue the materials cost of the aluminum is more than the labor and overhead costs to forge the bulkhead?
View attachment 51155
These empty soft drink cans are also aluminum.
View attachment 51156
These machines cost the same in China and USA.