§ Mr. CatonTo ask the Secretary of State for Foreign and Commonwealth Affairs what assessment he has made of the factors underlying China's increased defence spending. [2922]
§ Mr. MacShaneOn 6 March, China announced a 17.7 per cent. increase in defence spending, bringing the total to US$17.07 billion. Two reasons were given: the need to improve pay and conditions, and the need to strengthen high technology capabilities. Chinese official figures give little indication of total military spending, though we estimate that spending remains low as a percentage of GDP. China is committed to military modernisation, but economic development remains the overriding national priority.