China to increase defence spending by 15 per cent

China is to increase official military spending by almost 15 per cent this year as it seeks to upgrade its smart technology and improve the living standards of its soldiers.

The 14.9 per cent rise to 480.7 billion yuan (£50 billion), up 62.5 billion yuan from 2008, was announced in advance of the annual meeting of the rubber-stamp parliament, the National People’s Congress.

It is slightly smaller than the increase in recent years, suggesting that the government is focusing its spending on boosting the wider economy.

But after rises of 17.8 per cent in 2007 and 17.6 per cent in 2008, it still amounts to a rise of more than half since 2006.

In addition, the United States claims that real spending is significantly higher, as many costs, including major arms purchases, are kept off the officially announced budget.

This claim was rejected by Li Zhaoxing, a former foreign minister acting as spokesman for the Congress.

• A d v e r t i s e m e n t

He said that China had signed up to the United Nations code for reporting military expenditure in 2007.

“There is no such thing as the so-called hidden military expenditure in China,” he said.

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