Evaluation on Chinese Defense Expenditures from 1978–2009—From View of International Comparison - Advanced Research on Computer Education, Simulation and Modeling - page 279

4 Conclusion and Policy Suggestion
We design a system of indexes to appraise the level of Chinese defense expenditures
from various angles such as macro-economy, public finance and multi-objects of gov-
ernment. By the analysis of ratios comparison, we find that it is not wise to claim the
level of Chinese defense expenditures was high or not. In fact, Chinese defense spend-
ing had double characteristic. From the view of macro-economy, China had a low level
of defense expenditures, but from the view of the government's multi-objects, the de-
fense sector had expended much public revenue. In the future, China will pay more
attention to the social security, education, technology research and development. As a
result, the increase of Chinese defense expenditures has to depend on the expansion of
public finance. If the space of this expansion is baffled, then a great pressure to adjust
the structure of defense expenditure will be brought about so as to improve the effec-
tive performance of military power.
Acknowledgments. This paper is sponsored by Chinese Postdoctoral Research Fund.
The name of the project is Research on Defense Policy with China's Strategy of Peace-
ful Development.
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