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Tenet: China’s Defense Budget Twice What They Report; Continue to Acquire Missiles From Russia

March 9, 2004 :: CIA :: News

Testifying before the Armed Services Committee, CIA Director George Tenet expressed the “greatest concern” with China’s military buildup.


China’s neighbors still harbor suspicions about Beijing’s long-term intentions. They generally favor a sustained US military presence in the region as insurance against potential Chinese aggression.

Our greatest concern remains China’s military buildup, which continues to accelerate. On Saturday, China’s Minister of Finance announced a new defense budget that is 11.6 percent larger than last year’s. China’s announced annual defense budget has grown from some $7 billion ten years ago to over $25 billion today. Moreover, we assess the announced figure accounts for less than half of China’s actual defense spending.

Last year, Beijing reached new benchmarks in its production or acquisition from Russia of missiles, submarines, other naval combatants, and advanced fighter aircraft. China also is downsizing and restructuring its military forces with an eye toward enhancing its capabilities for the modern battlefield. All of these steps will over time make China a formidable challenger if Beijing perceived that its interests were being thwarted in the region.

 

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