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LONDON — China may be a growing military giant, but a leading analyst says the United States still dwarfs all other countries in terms of military spending.
Jane's Information Group says U.S. military spending of just under $700-billion a year is almost nine times that of the next-biggest spender, Britain, which sports a budget of $79.27-billion.
France is the third-biggest military spender at $65.74-billion.
A report compiled last month for Jane's Industry Quarterly said China currently ranks fourth in defence spending, with a budget of $58-billion in 2008.
But Jane's expects that will grow massively to $360-billion by 2020, if current increases continue.
The report identifies Russia and India as other fast-growing defence spenders, although Russia is currently ranked eight overall at $36-billion and India 11th at more than $27-billion.
“In Western Europe, we're all pretty flat in terms of our spending,” said Matt Smith, a defence economics analyst at Jane's. “It would take a long, long time to even come close to what the U.S. is spending.”
China's growth is “the longest and most sustained,” Mr. Smith said.
The report says China is likely to become a major exporter of military equipment, as a combination of rapidly improving technology, low costs and geopolitical factors make it more attractive to buyers, especially in Africa.
“China has a well-documented interest in Africa's resource wealth and has been vigorous in its cultivation of economic ties,” the report said.
“Recent shipments of arms to Sudan and Zimbabwe have also demonstrated China's clear willingness to conduct business with regimes other suppliers will not,” it adds.
Mr. Smith said Russia's military budget “took an enormous hit in the 1990s,” but has been built back up, thanks to revenue from the country's booming oil and natural gas industries.
The report predicts a decline in Russia military exports by 2010 as its traditional markets, China and India, try to become more self-sufficient.
But it says Russia may find growth in countries – largely in Africa, Southeast Asia and Latin America – that bought its tanks and armoured vehicles in Soviet times.
