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China Military Expenditures
In the 1980s Chinese statistics indicated that defense spending
represented a decreasing percentage of government expenditures,
falling from 16 percent in 1980 to 8.3 percent of the state budget
in 1987. However, United States Department of Defense studies
suggested that the published budget figures understated defense
spending by about
one-half. With the growth of the Chinese economy under the
modernization program, defense spending also represented a smaller
percentage of the gross national product (GNP) than previously.
United States Central Intelligence Agency analysts estimated that
defense expenditures in 1978 absorbed 8 to 10 percent of GNP; in
1986 United States Department of Defense analysts estimated that
China's military expenses fell within the range of 6 to 8 percent
of GNP. Comparison of indices of defense procurement spending and
industrial production from 1971 to 1983 revealed that the former
increased by 15 percent, whereas the latter rose by 170 percent.
These studies indicated that Chinese leaders have indeed
subordinated military modernization to economic development.
United States Department of Defense officials in 1986 estimated
Chinese defense spending by resources and force categories for the
1967 to 1983 period. Roughly 50 percent of defense expenditures
were for weapons, equipment, and new facilities; 35 percent for
operating costs; and 15 percent for research, development, and
testing and evaluation. By service, these costs broke down to 25
percent for the ground forces; 15 percent for the Navy; 15 percent
for strategic air defenses; 5 percent for ballistic missile forces;
5 percent for tactical air forces; and about 35 percent for
command, logistics, personnel, intelligence, medical care,
administration, research, development, testing and evaluation, and
other support. Beginning in the late 1970s, China devoted more
resources to its Strategic Missile Force, indicating an effort to
increase its strategic security while modernizing the economy, and
to national command and support activities, reflecting an emphasis
on modernization of the defense structure.
Data as of July 1987
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