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LEAD: China announces 14.7% defense budget hike on eve of meeting+
[March 04, 2006]

LEAD: China announces 14.7% defense budget hike on eve of meeting+


(Japan Economic Newswire Via Thomson Dialog NewsEdge)BEIJING, March 4_(Kyodo) _ (EDS: UPDATING WITH COMMENTS, HOUSE ARREST OF ACTIVISTS)

China on Saturday announced a plan to boost its defense spending by 14.7 percent from a year earlier in 2006, a move that marks the 18th straight year of double-digit growth of the military budget.

The increase will bring the spending to 283.8 billion yuan ($35.3 billion), National People's Congress spokesman Jiang Enzhu told a press conference held on the eve of the country's annual legislative session.

The funds will be used to raise troop wages, train personnel, upgrade the country's defense capacity and buy fuel in the face of a major rise in oil prices, Jiang said.

Jiang defended the boost in military budget, saying, "In recent years, China's defense spending has increased along with its economic development."

"The level of China's military spending is low when compared to some other countries, not only in terms of absolute value, but also in terms of the proportions defense budgets occupy in the nations' gross domestic product and the entire budget," Jiang said.



Countries such as the United States, France and Germany allocate a larger portion of their budgets to the military than China, Jiang said.

The military spending plan is expected to receive the support of the NPC, which routinely approves legislation, during its 10-day session that will begin Sunday.


The increase in China's defense budget comes at a time when countries such as the United States and Japan are calling on Beijing to boost transparency in its military spending, which analysts say could be two or three times more than the declared figure.

Among the complaints raised by the governments as well as analysts is the omission of certain funds. Experts say the official budget excludes, for example, money spent on civilians who help the military and some military research.

Other experts say China should let others know more about what it is spending the money on.

"I think the bigger problem is that other countries cannot see the direction China is moving toward because there is a lack of transparency about the types of equipment it is acquiring," said a Western military source in Beijing. "That is more bothering than the budget growth rate."

The strengthening of China's military is also being closely watched as tensions in the Taiwan Strait continue.

Jiang on Saturday repeated China's criticism of Taiwan President Chen Shui-bian, who recently terminated the functions of a council for promoting unification, calling his action a provocation for cross-strait ties.

Chen's actions are "a dangerous step toward the road of 'Taiwan independence,'" Jiang said. It is a "serious challenge" to the peace and stability of the Taiwan Strait, he said.

The independence-minded Taiwan leader ceased the functions of the 15-year-old National Unification Council and the application of its policy guidelines late last month, prompting strong criticism from Chinese leaders.

"We will never allow the secession of Taiwan from China," Jiang said.

China has threatened military action should the self-ruled island, which split away in 1949 amid a civil war, declare its independence.

Security, meanwhile, was stepped up in the Chinese capital as the legislative season began Friday with a meeting of China's top political advisers.

Dozens of activists helping antigovernment petitioners have been detained in recent days, supporters of the petitioners said.

Ni Yulan, a 46-year-old former lawyer, and her husband were believed to be among those who have been detained. A member of her family told Kyodo News the couple's whereabouts are unknown.

"I can't reach them through their mobile phones, and I'm sure they have been detained," the family member said. Ni has in the past been put under house arrest during the legislative season.

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