The Significance of Russian Weapon Sales to
China
by Major Stephen M. Bruce

What is the nature of the "strategic alliance" between the Russian Federation and the
People's Republic of China?1  For the
United States, understanding the nature of the Sino-Russian convergence is critical in developing
foreign and security polices for the next decade. As President-elect George W. Bush has stated,
"in the long run, security in the world is going to be how we deal with China and Russia." The
new president's approach is likely to eschew the Clinton Administration's strategic-partnership-
through-engagement approach towards both Russia and China during the 1990s, which vice-
president Al Gore had intended to continue.2  However, this 'new' relationship between
Russia and China, despite the "Who Lost Russia?" debate and the concern of Chinese espionage
and regional expansion is at times misunderstood or simplified.3 
One of these simplifications is Russian weapon sales to China, which is often relegated to
the idea that Russia simply needs money and China needs new weapons, so they can both band
against the United States to create a multi-polar world.4  Although this is a significant part of
the motivations for these sales, it is not the only part. In fact, the motivations are more complex
and reflect domestic concerns as well as short and long-term foreign policy goals of China and
Russia. An examination of the extent and character of Russian armament sales to China and, the
subject of this paper, serves as a starting point to understand the current Russian-Chinese
relationship.
What emerges is not an equal rapprochement between Russia and China.5  Although
both countries are working together against what they see as a US hegemonic drive, they are
using this period to weather different changes and build the infrastructure for the pursuit of
future geopolitical goals that are potentially opposing. Furthermore, until now Russia's
relationship to China has not been based on a unified strategy. Instead it is an amalgamation of
individual actors for their own interests. China's, on the other hand, has been, in comparison, a
unified strategy. Russian weapon sales are a prime example.
Since 1991, the Russian arms industry increased its arms sales to China, with total sales
exceeding $9 billion by the end of 1998.6  Stemming from the economic collapse and
revolutionary state of transferring from communism, with its command economy, to a free
market-based democracy, Russia started to actively expand its arms sales.7  This occurred
for several reasons.
First, as Stephen Blank points out, "arms sales are critical to Russian defense industry and
planners because the defense industry cannot survive on the basis of domestic procurements
alone."8  The Soviet military-industrial complex that
the Russian Federation inherited still remains capable of producing state-of-the art weaponry, but
is not capable of finding consumers at home. For, instance the Ministry of Defense owes the
arms industry over 20 billion rubles, with a quarter of these for wages alone.9  This is
partially a legacy of the Russian military leadership, which opted for retaining force structure
and readiness over investment in future technologies in the early 1990s. Throughout the
nineties, the Russian government has been unable to implement any coherent defense conversion
program that is tied into a realistic national security strategy.10 
This opened up windows of opportunity for the defense industry to find purchasers abroad.
With a weak central government, these actors were free to act without the constraint of a
coherent national security strategy, to which arms sales would be subordinated and regulated by
licensing.11  In fact, under Yeltsin, self-serving
defense industry officials were elevated to ministerial status and were able to gain some
subsidies of the arms industry. Today many high-tech armaments and platforms are sold, with
state consent, abroad, before Russian forces get them.12  In many cases, arms are sold
to states that Russia is likely to confront in the future.
As a result, the Russian military currently can not afford to modernize itself or invest and
support new weapons development or procurement. By not investing in R&D, it is likely that
Russia will exhaust any technological lead it has in the arms trade in the next five to ten years.
By 1997, Russian military output was only 8.8% of its 1991 level, reflecting a thirty- percent
decline per annum.13  Although there was a five-percent
increase in 1998, overall real output still declined. Significantly, the sectors that did not
decrease amidst this overall decline were the missile and space sector, the aircraft and radio and
shipbuilding sectors.14 
It is these sectors where Russian weapon transfers are concentrated. Russia, primarily
through transfers to India and China, is the second leading supplier of major conventional
weapons in the world for the 1994-1998 period, even though from 1997-1998 these transfers
have declined by almost sixty percent.15  Future transfers of ships and combat
aircraft will soon boost this figure, although only for the short term. Due to a lack of major
investment in new technologies Russia risks losing its edge in the arms market.16 
State support of these weapon sales, even if after the fact, could satisfy immediate domestic
needs of Russia. The revenue gained could slow deterioration of the armed forces and create
space for Russia to first stabilize the collapse of the armed forces and then start implementing
true military reform.17  As Alexei Arbatov, the deputy chairman
of the Committee of on Defense in the Russian Duma, shows: "If Russia's mammoth military-
industrial establishment were to collapse - a distinct possibility in the next few years -- the
consequences would be no less devastating than were the events of 1941 not only for Russia
but for the entire world. Debates and infighting over military reform are at the very core of
Russia's domestic politics."18 
It is crucial for Russia to prevent a complete collapse of its armaments industry. From
1991 to 1997, the number of enterprises subject to Ministry of Defense control has dropped from
over 1,800 to less than 500, most of which never successfully converted to civilian
production.19  Lacking any real defense conversion
policy, though sorely needed, Russia must rely on foreign financing of its limited R&D efforts to
prevent a complete disintegration of its scientific-technological base, one of the few bases where
Russia still excels and that took decades to build up. Russia, in effect, due to this lack of future
investment in its military (R&D, weapons procurement, etc.) is suffering from a "creeping
disarmament," so that by 2010 only ten percent of Russia's military equipment will be rated as
modern.20  Thus, Russia's fiscal motivations for
selling arms to China are fueled by more than simple profit-motive, but by a genuine need to
protect some of the most vital assets to a modern industrial state and to prevent an erosion of its
national capital and power.
China, as well as India, is one of the two major markets open to Russia, as the other large
arms-trading countries follow the sanctions against selling arms to China.21  Beijing
has several reasons for turning to Moscow for arms to modernize the People's Liberation Army
(PLA). One observer credits four major impulses for this. This includes a realization and
commitment by the Chinese leadership to modernize the PLA to develop asymmetrical warfare
capabilities; the acceptance of the "inability of China's research and development sector to
produce equipment that matches, or indeed, exceeds the state of the art;" an amelioration of fears
of dependence, by realizing China's growing international economic leverage; and recent
sustained economic growth, allowing greater defense budgets.22 
What this assessment does not stress, however, is that Beijing's arms purchases are, in stark
contrast to Moscow, nested on a well-defined national security strategy with its supporting
national military strategy, which has been characterized as "long-term and incremental."
23 
Importantly, all major organs of state subscribe to this strategy. The PLA is subordinate to the
state and the arms industries are equally integrated into the overall state structure under the
control of a one-party regime.24  Decision-making is more open to
consensus building.25  However, what is important to note is that
when it comes time to act, China is still a unitary actor, compared to Russia.
Specifically, Jiang Zemin's and the PLA's view of the security environment
converge.26  China sees the next two to three decades
as relatively safe from world war and allowing for large-scale peace and development.
However, this is on the backdrop of a classical Hobbesian view of a zero-sum game for personal
advantage between states. Thus, China, and particularly its military strategists, sees the world,
or at least the region, as basically hostile to China's sovereignty and that current partners can
transform into future rivals.27  In context, a great part of China's
armament drive is a response to a potential regional arms race.28  It sees
itself as threatened, although most of its neighbors generally see themselves forced to counter
China's potential.29 
Two of China's regional neighbors have gone nuclear. Potential future, and often current,
rivals Taiwan, Japan, and South Korea receive 74% of all Asian conventional weapons
transfers.30  In addition, most other South and East
Asian countries have been embarking on a modernization of their forces, especially combat
aircraft and naval forces.31  India, as well as Singapore and Thailand
are actively arming and pursuing regional aspirations for influence. Globally, both Russia and
China, see American might, in all its forms, as a threat. This includes US-led actions of NATO
expansion and military actions in the Balkans, support for Taiwan and Japan, as well as pursuit
of energy sources in the greater Caspian region. Many of China's neighbors' armament
programs include US combat aircraft, or other high-tech components.
The PLA's future concept of warfare, in addition to the impulses mentioned above, is
derived from other factors. First, the PLA has accepted the fundamental revolution in military
affairs (RMA) after assessing how easily the US-led coalition defeated Iraqi forces in 1991.
Second, China's strategic center of gravity has shifted from the interior, to deter a Soviet
invasion, to its periphery, especially the eastern coast from Dalian to Hunan.32  Resolving
most of its land border problems,33  with the exception of its border with North
Korea, and potential friction spots with India, frees China from the requirement to have large
land forces for defense. But, at the same time, China gains a "littoral and maritime defense
requirement the essence of defending China will be defined by the PLA's
ability to defend seaward from the coast in the surface, subsurface, and aerospace battle-space
dimensions."34 
It is this picture that drives the acquisition of Russian arms. Russia is desperate to prevent
further erosion of its scientific-technological infrastructure and has in its arms exports, besides
its energy resources, one of the last viable sectors that it can produce immediately. China desires
to make generational leaps to build its own scientific-technological base for domestic armament
production and, therefore, compete against what it sees as a rising regional military threat.
35 
Specifically, this translates into building a PLA that can compete with its neighbors in force-
projection for either coercive or deterrent ends and to deter the US with asymmetrical
warfare.36 
Thus, China is focusing on combat and lift aircraft, combatant ships, information and space
technology, command and control and nuclear missile improvement. Russia is selling state-of-
the-art combat aircraft, such as the Su-27 and Su-30, Kilo class submarines and combat ships,
radar technology, air-to-air and surface-to-air missile technology, and AWACs. In addition,
Russia has been indiscriminately selling dual-use technology, as well as ballistic missile
technology.37  This indiscriminate and uncontrolled
Russian policy is "distinguished by the absence of coherence and consistency due to the struggle
among the 'multipolar' interests and opinions at the policy-making level and the government's
utter disorganization."38  As a result, narrow interest groups are
selling off Russian technology not only in the form of an industrial end product, but also the
actual know-how and blueprints, further eroding the Russian technological base.
China is actively seeking and successfully acquiring not only the finished hardware, but
also the know-how (see notes 11 and 37), in what Blank calls a "Chinese arms transfer
offensive."39  This is part of a program of major, long-
term restructuring and defense conversion.40  The intent includes not only rapidly
upgrading the armaments of existing and new formations to counter the regional arms race, but
to rapidly expand and elevate the technological base. This is accomplished by pursuing 'spin-
off' and 'spin-on' of dual-use technologies and conventional military products, which is also
seen to contribute to the civilian economy, as well as strengthen deterrence.41  China is
successfully melding technologies and advancing them to slowly build up its technological
base.42 
This leads to several conclusions. First, given the weight that defense conversion plays in
future Russian reform, the current lack of control over arms sales and lack of investment in
military reform is a significant inhibitor to Russian internal stability and long-term security
policy. With the world arms trade in long-term decline,43  the Russian defense industry,
on its current tack, faces the prospect of near-complete collapse, which spells further problems
for a country already troubled. Russia is helping to build up and arm a country with which it
may very well have significant future friction. For instance, China is proliferating Russian
technology to current and potential adversaries of Russia, resulting in arms technology
'blowback.'44  However, Russia has significant interests
that coincide with China's on multiple issues and most Russian strategists think that the costs
outweigh the risks, and that Russia should continue on a 'balanced open foreign policy' that
allows it to remain engaged with China and the West.45 
Secondly, China's 'arms transfer offensive' is tied into a coherent national security
strategy, with a supporting national military strategy, making it capable of acting as a significant
regional actor. It is pursuing a defense conversion and modernization strategy that will
significantly increase its military capabilities over the long run. Importantly, the scope
of this paper, the modernization of the PLA is playing second fiddle to the main effort, economic
conversion.46 
Although this will not entail a direct confrontation with the US, or its major allies of Japan
and South Korea, this increased capability will give it limited deterrent capabilities versus these
states. This same build-up, however, is providing China a fledgling power projection capacity to
compel actions versus other regional actors, if it so desires to do so, especially in maritime
affairs.47 
Furthermore, it is not conclusive that China is participating in a 'spiral of fear' arms build-
up, similar to pre-World War One Europe. Much of China's build-up seems to be oriented as
much towards internal stability as it is towards foreign policy objectives. Nonetheless, most
neighbors of China are pursuing a 'prepare for the worst, but hope for the best' approach to
China, realizing that policies are easier changed than capabilities.48  They can
not ignore China's pursuit of high-technology weaponry from Russia, given China's sheer size
and economic potential, and any ensuing imbalance of power. This is especially relevant, as
Jonathan Pollack point out, as the region does not have, and is unlikely to develop, region-wide,
stabilizing "security norms to regulate potential rivalries," and, therefore, this will "tend to
generate particular anxieties among smaller states." 49  Taken together, Russian structural and economic
instability and Chinese defense modernization do not present an clear and present danger to the
international order, but merely a possible one, for which there is time and opportunity to act, or
build on.
Endnotes
1. For a good overview of this 'strategic
convergence', see Bluth, Christopher. "Russia and China Consolidate Their New
Strategic Partnership." Jane's Intelligence Review1998, 18-25; and Menon
Rajan. "The Strategic Convergence Between Russia and China." Survival 39, no.
2, Summer (1997): 101-125. Furthermore, China and Russia have continuously issued
statements reinforcing their partnership; for an example see The Russian Federation,
and The People's Republic of China. "China-Joint Statement on International Issues and
Relations." , 5. Moscow, 1997, and ITAR-TASS. Russian-Chinese Statement.
FBIS Document ID: 0fmos2204ezoew, 1999. Accessed 14 Dec 1999. . Available from
http://wnc.fedworld.gov/cgi-bin/retrieve.cgi BACK
2. Gore, Al. Engagement with Russia and
China. Gore 2000, Inc., 2000. Accessed 18 May 2000. Internet. Available from
http://www.algore2000.com/agenda/index.html BACK
3. For a comprehensive coverage of these
last two issues mentioned, see Pollack, Jonathan D., and Richard Yang, eds. In
China's Shadow: Regional Perspectives on Chinese Foreign Policy and Military
Development, CF-137-CAPP: RAND, 1998, as well as ; The United States House of
Representatives. U.S. National Security and Military/Commercial Concerns with the
People's Republic of China. Washington, DC: The Congress of the United States,
1999.BACK
4. As in the references in note 1, it should be
noted that both China and Russia have adopted specific goals of creating a multi-polar
world that differs from the policy of the US for the last ten years to create
interdependence.BACK
5. The ideological rift between Russia and
China ended when party-to-party relations were re-established during the Deng-
Gorbachev summit in May of 1989. BACK
6. Simunovic, Pjer. "Controversy Just Fans
The Flames Of Russia's Arms Export Drive." Jane's Intelligence Review1998, pp.
4-12.BACK
7. Often overlooked in the Western media, the
Russian Federation was borne from a revolution, despite being a generally bloodless
transition of political and economic systems, and is still in a state of revolutionary
transition. All state institutions and channels to power are contested and wholesale elite
replacement has taken plane; see McFaul, Michael. "A Precarious Peace: Domestic
Politics of Russian Foreign Policy." International Security 22, no. 3 (1997): 5-35.
BACK
8. Blank, Stephen J. The Dynamics of
Russian Weapon Sales to China. Carlisle, Pennsylvania: Strategic Studies Institute,
1997. Study.BACK
9. SIPRI, ed. SIPRI Yearbook 1999:
Armamemts, Disarmament and International Security. Edited by Connie Wall. New
York: Oxford University Press, 1999. BACK
10. For one of the best analysis and
summaries of the state of Russian military reform and conditions, see Arbatov, Alexei G.
"Military Reform in Russia." International Security (1998): 83-134.BACK
11. Due to a weak central government, many
arms deals, especially in the early and middle 1990s were arranged without
governmental control or approval. For instance, The general director of Sukhoi, Mikhail
Simonov, personally arranged to transfer licenses for production of the Su-27 fighter to
China. Moscow was then forced to back this, lest it sour relations with Beijing; see
Blank, 1997 However, since 1998, Moscow has attempted to shore up its control over
the arms industries, although not as effective as hoped, thus allowing dual-use
technologies to continue to spread.BACK
12. Blank, 1997, p.2.BACK
13. SIPRI, 1999, p. 391.BACK
14. SIPRI, 1999, p. 392.BACK
15. Russia transferred $12.26 during the
1994-1998 period, with the US leading the world with $53.88 million. France ($10.58M),
the UK ($8.9M), and Germany ($7.2) are the next three largest suppliers. These five
nations comprise 82.7% ($92.851M of $112.278M) of the world's arms transfer market.
China is the sixth largest supplier with $2.826M; SIPRI, 1999, pp. 422-426BACK
16. See SIPRI, 1999, p. 423 In addition,
there are already some indicators that Russian arms transfers may be starting to slump.
Arms sales were valued at $2.3 billion for 1998 and were not expected to increase for
1999, although Rosvoorouzhonie, the Russian arms export company, is trying to
arrange sales of T-90 main battle tanks to India; Arms Trade News. News Briefs.
Conventional Arms Transfer Project ,, 1999. Accessed Feb 3 2000. Internet. Available
from http://www.clw.org/pub/clw/cat/atn0499.html BACK
17. Arms sales also present one of the
strongest inflows of hard currency not subject to conditions, such as IMF funds do.
Most of Russian arms transfers are paid in hard currency; Simunovic, 1998 BACK
18. Arbatov 1998, p.83.BACK
19. Arbatov 1998, p. 110.BACK
20. In the 1970s, the relationship of
maintenance (wages, salaries, food, supplies) to investment funding (R&D, weapons
procurement, etc.) was 30:70. From 1991-1996, this reversed to 70:30. Defense
funding during this time actually was at only 70% of requirements, so, due to
sequestering, which prevented cutting wages, etc., investment funding was gutted. In
1997 this was corrected to 53:47, but has since drifted back to more than sixty percent
for maintenance; see Arbatov, 1998, pp. 103-105BACK
21. China and India absorb over 80 percent
of Russian arms transfers. Exact figures are difficult to determine, due to secrecy of all
three governments; seeSimunovic, 1998BACK
22. Fisher, Richard D. "Foreign Arms
Acquistions and PLA Modernization." In China's Military Faces The Future, ed.
James R. Lilley and David Shambaugh, 85-126. Washington, DC: East Gate, 1999.BACK
23.
Godwin, Paul H. B. "Uncertainty, Insecurity, and China's Military Power."
Current History 96, no. 611 (1997): 252-257.BACK
24. Today policy-making under Jiang Zemin
is not the complete one-man show under Mao, nor does Jiang enjoy the position of
Deng as the final decision-maker Joffe, Ellis. "The Military And China's New Politics:
Trends and Counter-Trends." A paper delivered at the Conference On The People's
Liberation Army in the Information Age, San Diego, 1999.BACK
25. For other, earlier views that reached this
conclusion, see Lewis, John W., Hua Di, and Xue Litai. "Beijing's Defense
Establishment." International Security 15, no. 4 Spring (1991): 87-109.BACK
26. Finkelstein, David M. "China's National
Military Strategy." A paper delivered at the The People's Liberation Army in the
Information Age, San Diego, 1999.BACK
27. Finkelstein, 1999BACK
28. The term 'potential' arms race will be
used here. Although the entire region is arming, it is not primarily to a perceived overt
offensive threat from China. Much of the regional arming is due to the economic boom
of the last decade. China figures as one of the reasons, but not the primary reason
driving this modernization. However, Bates Gill also finds that Chinese maritime-
oriented security policies and modernization are of greatest concern to its neighbors
and that China's overall defense conversion is increasingly affecting procurement
decisions in the region; Gill, Bates. "Chinese Military Modernization and Arms
Proliferation in the Asia-Pacific." A paper delivered at the In China's Shadow: Regional
Perspectives on Chinese Foreign Policy and Military Development, Honolulu, 1998.BACK
29. For a comprehensive treatment of the
region's perception of China's growth, see Pollack and Yang, 1998 BACK
30. SIPRI 1999, p. 424.BACK
31. Japan's maritime Self-Defense forces
are the region's largest and most powerful navy, capable of being operating over a
1,00o nautical miles off its shores, and supported by a cutting-edge air force. Thailand
has recently launched its first aircraft carrier, albeit small by Western standards, with
11,500 tons displacement.BACK
32. China's strategic center of gravity was
deliberately established in its center, based on the concept of "people's war under
modern conditions". Any modern invading army would be absorbed and then defeated
through low-tech attrition. Having the economic center of gravity, such as industrial
nodes, in the country's center would afford protection and therefore the ability to sustain
the war effort. In essence, this would be a Chinese adaptation of Svechin's concept of
strategic defense and a defensive form of the German Kesselschlacht.BACK
33. China and Russia have settled over 98
percent of all their border problems; see SIPRI, 1999 However, much of the
cooperation and rapprochement is in the strategic security arena. Russia and China
share several problems and give each other several other problems at the regional
level. This includes migrations, trade, and smuggling across porous borders, to name a
few. For a representative overview of these issues as possible sources for Sino-
Russian friction, see the following (1) Kerr, David. "Problems In Sino-Russian
Economic Relations." Euroe-Asia Studies 50, no. 7 (1998): 1133-1156, (2) Kim,
Won Bae. "Sino-Russian Relations And Chinese Workers In The Russian Far East: A
Porous Border." Asian Review , no. Dec (1994): 1064-1076, and (3) Moltz,
James Clay. "Regional Tensions In The Sino-Chinese Rapprochement." Asian
Survey , no. Jun 1 (1995): 511-527.BACK
34. Finkelstein 1999, p. 115 In addition, see
Ahrari 1998 and Thompson 1999BACK
35. For a concise treatment of the China's
defense industry conversion program, see Frankenstein, John. "China's Defense
Industries: A New Course?", A paper delivered at the Conference On The People's
Liberation Army in the Information Age, San Diego, 1999.
Unlike Russia, China has a synchronized defense conversion program. This is
succinctly expressed in a statement of the director of the Commission on Science,
Technology & Industry for National Defense, General Cao Gangchuan: "We must
deepen the structural reform and make continuous efforts to improve the mechanism of
management and operation. We must strengthen unity and cooperation, fully bring into
play the role of provincial and municipal offices of science, technology and industry for
national defense, energetically promote the "64-character spirit of pioneering an
enterprise" .." BACK
36. For an overview of the PLA's concepts,
see the following (1) Mulvernon, James C. "The PLA and Information Warfare." A paper
delivered at the The People's Liberation Army in the Information Age, San Diego, 1999.,
(2) Nan Li. "The PLA's Evolving Campaign Doctrine and Strategies." A paper delivered
at the The People's Liberation Army in the Information Age, San Diego, 1999, (3)
Pilsbury, Michael. "Chinese Views of Future Warfare." In China's Military Faces The
Future, ed. James R. Lilley and David Shambaugh, 64-84. Washington, DC: East
Gate, 1999, and (4) Yang, Andrew N. D., and Col. Milton (ret.) Wen Chung Liao. "PLA
Rapid Reaction Forces: Concept, Training, And Preliminary Assessment." A paper
delivered at the The People's Liberation Army in the Information Age, San Diego,
1999.BACK
37. In 1995, for instance, China purchased
upper-stage rocket engines from Russia, in violation of the Missile Technology Control
Regime, and without a state license; Blank, 1997, pp. 6-8BACK
38. Quoting an article by Andrei Kortunov
and Andrei Shumikhin in Comparative Strategy, XV:2, April 1996, Blank, 1997, p.8BACK
39. Blank, 1997, p. 9BACK
40.
This was announced at the 1998 Ninth National People's Congress and
referred to as a 'strategic shift' of the Chinese defense industrial complex; see
Frankenstein, 1999, 189-191 and 202-205BACK
41. Frankenstein 1999, p. 209BACK
42. This is a recurring conclusion of many
observers. For instance, see Fisher 1999, 88-89BACK
43. Current forecasts anticipate a continuing
and steady decline in global transfers of conventional weapons, barring a dramatic shift
in the world security environment. From the last years of the Cold War, global transfers
of conventional weapons have declined significantly from approximately $40 billion
annually in 1984-1988, to through a steep decline in 1989-1994, to approximately $21.9
billion in 1998, which approximates the 1970 level of annual spending (prices are in
constant 1990 dollars; SIPRI, 1999, pp. 421-422BACK
44. This is where arms are sold from country
A to country B, who in turn sells it to an adversary of A. Although not dealt with here in
detail, China is not only 'spinning off' new technologies from Russian technologies, but
also proliferating these to other countries with whom Russia is in conflict, or might be in
the future. This includes Iran, for instance. Russia, however, is not the only recipient of
this unintended consequence. Israel and the US, mainly through Israeli weapon sales,
some of them joint ventures with Russia, is experiencing the same thing. See Fisher
1999, p. 90, and Rodan, Steve. "USA Again Presses Israel To Stop Technology Sales
To China." Jane's Defence Weekly, Apr 5 2000.BACK
45. See Bazhanov, Evgeni. "Russian
Perspectives on China's Foreign Policy and Military Development." A paper delivered at
the In China's Shadow: Regional Perspectives on Chinese Foreign Policy and Military
Development, Honolulu, 1998.BACK
46. For instance, during security Chinese-
Japanese dialogues in 1998, China promised to keep its defense budget at one percent
GNP; see Akiyama, Mashahiro. "Japan's Security Policy Toward the 21st Century."
Royal United Services Institute for Defense Studies (RUSI) Journal , no. Apr
(1998): 5-9. This should be looked at very skeptically, as China does not publish
reliable figures on defense spending. Serious studies estimate that China's "official"
and "actual" defense spending vary considerably. As a result estimates of actual
defense investment for the 1996 budget, for instance, range from $8.7 billion, the
estimated figure, to $63.5 billion in actual investment. For a thorough treatment of this
subject, see Gill, Bates. "Chinese Military Modernization and Arms Proliferation in the
Asia-Pacific." A paper delivered at the In China's Shadow: Regional Perspectives on
Chinese Foreign Policy and Military Development, Honolulu, 1998, as well as Joffe,
Ellis. "The PLA and the Chinese Economy: The Effect of Involvement." Survival ,
no. Summer (1995): 24-43.BACK
47. For instance, China's has formed a
political alliance with Myanmar, and is constructing inland waterway to Rangoon, which
will give China direct maritime access to central Asian sea areas, and will result in
increased Chinese naval activity in the Bay of Bengal; Downing, John. "Evolving
influence of sea power in the 21st century." Jane's Navy International, Nov 1,
1999.BACK
48. Pollack and Yang, 1998, p. 4.BACK
49. Pollack and Yang, 1998, p. 3.
BACK

2001, Foreign Area Officer Association
Springfield,
Virginia
Maintained by LTC Steve
Gotowicki.
http://www.faoa.org