According to official data, China's defense budget in 2024 amounted to 1.67 trillion yuan, with a growth rate of 7.2%.
Converted to the exchange rate, this amounts to $231.42 billion US dollars. This figure is only one-third of the huge military expenditure of the United States, which is $886 billion US dollars.
Some netizens expressed concerns about whether such a small military budget would be sufficient in case of war, given the current turbulent international situation.
However, some analysts point out that although China's military expenditure is less compared to the United States, the two countries have significant differences in military spending structure and national conditions, and they cannot be simply compared with numbers but should be considered from a more fundamental perspective.
While the United States has enormous military spending, in reality, there isn't much redundancy.
For example, in terms of equipment research and procurement, the United States typically authorizes private companies to conduct research and development, with assistance provided by government agencies.
The expenses for research projects of different levels of equipment also vary.
Since everything starts from scratch, research and development costs and ongoing operational costs are usually in the billions of dollars.
Furthermore, regardless of the success of the research, these technologies are not shared as backup because private companies consider them as trade secrets and do not share them.
Lockheed Martin and Boeing are the most typical examples, with the former securing a major order from the US Air Force with the F-22 and then successfully winning the JSF (F-35) project due to its experience in developing fifth-generation aircraft, while the latter can only watch Lockheed Martin's success from behind.
In contrast, the research and development costs and ongoing operational costs of Chinese projects are not included in the military budget.
After solving major key technical problems, China usually immediately puts them into use in the domestic market, a practice known as "cabbage-ization," which means advanced technology is dual-use for military and civilian purposes.
For example, the AXPN0164 fully polarized digital active phased array coastal surveillance radar developed by Guangdong's "Narui Radar" company is an example.
Although it is a civilian radar for export, its technological system is similar to the most advanced Airborne Warning and Control System (AWACS) 500 and the digital array radar of the Type 055 missile destroyer in the People's Liberation Army Navy (PLAN).
Without massive investment from the country to overcome the related technologies and materials of digital array radar, could private companies launch such products? Obviously not.
Therefore, China's research and development budget costs have never been included in military expenditure.
Even with hypersonic missiles and advanced reconnaissance-strike unmanned aerial vehicles, benchmark products can be found in civilian fields. This is the charm of "national mobilization."
In terms of equipment procurement, it's also often discussed. While many people first think of corruption, compared to the US military, any amount involved in corruption cases in any country in the world is considered clean.
Take the coffee cups of US military aircraft carriers as an example; 391 were damaged in 4 years, with a procurement cost of up to $320,000.
During the Trump administration, in order to cater to the Boeing consortium, Shanahan, a former Boeing executive, was hired.
Shanahan had no military experience or military capabilities, and his only contribution was to persuade the US Air Force to abandon the purchase of Lockheed Martin's F-35A and instead purchase 80 Boeing F-15EX aircraft for a total of $8.8 billion.
In contrast, the procurement documents of the Chinese military explicitly stipulate that the manufacturer's profit should be limited to 3% to 5%, and no price increases are allowed in any form during production.Sure, continuing from where we left off:
In addition to controlling profits, China also strictly regulates the production process to ensure efficiency and cost-effectiveness. This approach helps prevent price gouging and ensures that the military gets the most value for its budget.
Furthermore, China's defense industry benefits from a centralized planning system that allows for coordinated efforts in research, development, and procurement.
This system enables the government to prioritize key technologies and allocate resources accordingly, ensuring that the military stays competitive without overspending.
Moreover, China's emphasis on indigenous innovation and technology transfer has allowed it to reduce its dependence on foreign suppliers, thereby minimizing the risk of supply chain disruptions and sanctions.
Overall, while China's defense budget may be smaller than that of the United States, its strategic approach and efficient use of resources enable it to maintain a formidable military capability at a fraction of the cost.
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