Beijing intends to push ahead with plans to transform its military into a modern fighting force by 2020, even though the defence budget will probably grow by less than 10 per cent a year in the next five-year plan.
China's military made news last month by releasing photos of the first flight of its fifth-generation stealth fighter prototype, the J-20. Although it is considered a long way from production, it shows that the nation is setting its technology sights high, which will probably make developments in the next five years even more significant.
Modernising the PLA by 2020 was a political mission set by the Central Military Commission (CMC) - the top decision-making body - in 2006. That includes increasing the defence industry's ability to produce innovative arms.
Yet this goal will be reached with comparatively smaller budgets, officials say. Beijing said its defence budget increased by 7.5 per cent last year - the smallest increase in nearly two decades. That marked an end to a string of double-digit increases, with the average budget increase over the past decade nearly 15 per cent.
Many foreign governments, however, believe Beijing spends more on the military than stated in its published figures.
Xu Guangyu , a senior researcher at the China Arms Control and Disarmament Association in Beijing, said single-digit increases would be maintained in the next five-year plan.
