China says it will boost its defense budget in 2011
Baku, March 4 (AZERTAC). China is to increase its defense budget in 2011, amid fears in the region that its military might is growing.
Spending will increase by 12.7% to 601.1bn yuan ($91.5bn; £56.2bn) up from 532.1bn yuan last year, officials said.
Many analysts say China's actual spending on defense is far higher than the government reports.
The announcement comes a day ahead of the annual National People's Congress, at which the Communist Party will outline its five-year plan.
China has been building up its military in recent years; the defense budget was increased by 7.5% in 2010, after double-digit jumps in previous years.
Chinese parliamentary spokesman Li Zhaoxing said the increase was justified, and China posed no threat to anyone.
"China's defense spending is relatively low by world standards," Mr. Li said, echoing previous assertions by Beijing that its defense budget was much smaller than that of the US.
"China has always paid attention to restraining defense spending," he added.
However, many observers believe that the real figure spent on defense is much higher.
Beijing insists that its military modernization programme is entirely peaceful but the latest hike in defense spending to boost the 2.3m-strong People's Liberation Army is likely to further stir regional unease.
China is developing stealth fighters and advanced missile systems, and also plans to launch its first aircraft carrier.