China hikes military budget by 8.1%

China hikes military budget by 8.1%

Context:

China has hiked its military budget by 8.1%

China’s Defense Budget:

• China has hiked its defence budget by a hefty 8.1% over the previous year
• This has highlighted the country’s intent to build world-class armed forces.
• The total amount of spending would be $175 billion
• China has been steadily increasing its military spending, dovetailed to its economic rise.
• From a budget of $132 billion in 2014, spending rose by 10%, 7.6% and 7% respectively in the following years.

The Road ahead for China:

• Chinese Prime Minister has highlighted that that China would focus on building strong naval and air defences, bolstered by the infusion of high technology, derived though greater collaboration between domestic military and civilian industry
• He has underscored that China had fulfilled its earlier goal of cutting troop numbers by 3, 00,000, as part of a road map to build a modern technology driven military force.
• Further he has stressed that major advances had been recorded in developing military technology and equipment with the help of greater civilian-military industrial integration.

Other Details:

• China intended to raise its Gross Domestic Product (GDP) by around 6.5%.
• This is expected to lift 10 million people out of poverty
• Unemployment rate would be cut to below 5.5%.
• ‘Made in China 2025’: Chinese Prime Minister has pointed out that the new budgetary allocations were in tune with China’s transition to a innovation-based economy that would leverage Artificial Intelligence, Big Data and Internet of Things to produce world-class products under the ‘Made in- China 2025’ plan.