Our View:

China has continued its assertion of dominance in the South China Sea over several incidents in the past year. This has raised tensions between its Asian neighbours as well as the U.S. and has even caused a standoff between militaries. Although China has begun to make political moves, deals and visits to ease these tensions, many speculate that these are more for show rather than sincere negotiations. Again, little is truly known about China’s domestic situation due to its blockade against news leaving the country.

China’s defensive position and plans are difficult to fully confirm due to China’s secrecy on such matters. Like many aspects of its defence posture, China keeps its annual defence budget secret, nevertheless, it is possible to make an accurate estimate regarding what the country spends annually on defence. China is one of the worlds largest spenders on defence but its significant rivals, the U.S., claim that China still has the disadvantage in terms of size and quality of equipment.