ISN SECURITY WATCH (04/03/05) - China has announced plans to increase its military budget this year by a massive 12.6 per cent to modernize the People’s Liberation Army (PLA), the largest standing army in the world.
The Chinese State Council has proposed to parliament a US$29.98 billion national defense budget for the current fiscal year, and parliament is scheduled to discuss the proposal on Saturday.
The military budget hike comes as parliament is also set to debate an “anti-secession law” aimed at curbing any bid by Taiwan for formal independence from mainland China.
Chinese parliamentary spokesman Jiang Enzhu was quoted by Agence France Presse as saying that the anti-secession law was not intended to “start hostilities with Taiwan”, nor did it represent a “war mobilization order”. But he warned the separatist activities of pro-independence forces in Taiwan.
Chinese President Hu Jintao was quick to downplay the anti-secession law, saying: “We will continue efforts with utmost sincerity to seek the prospects of peaceful reunification with Taiwan,” Xinhua news agency reported.
Parliament is expected to approve the anti-secession law during its 12-day session, which ends on 14 March.
In the meantime, Taiwan's pro-independence President Chen Shui-bian has offered his own warnings, saying that Taipei would introduce an “anti-annexation” law in response, and would consider holding a referendum on independence to counter China’s anti-secession legislation.
The increased military budget proposal has also sparked concern in the US, which fears a Chinese invasion of Taiwan. Washington has committed itself to defending Taiwan in the event of an attack by mainland China.
Chinese officials have sought to downplay the budget increase, saying that the much of the funding would go to cover soldiers’ salaries and the social costs of retiring some 2 million military personnel, though some would also be earmarked for military training and modern weaponry.
Jiang also pointed out that despite the proposed increase, China’s defense spending would still be relatively modest. “This is still a fairly small amount compared with the military spending of other major countries in the world,” Jiang said in a statement.
China has announced large increases in military spending nearly every year for more than a decade, with defense spending rising by more than 17 per cent in 2001 and 2002, in the country’s bid to transform the military into a high-tech force. But in 2003, defense spending fell by 9.6 per cent - according to official figures - before rising to 11.6 per cent last year.
Taiwan is also reportedly considering a US$15 billion arms budget to purchase submarines, anti-missile systems, and submarine-hunting aircraft to counter a possible offensive from China. Taiwan’s defense budget for 2005 is almost a third of Beijing's official budget.
(By Animesh Roul in New Delhi)
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China opposes independence for Taiwan.

The People's Republic of China government plans to pass an anti-secession law, aimed at preventing a declaration of Taiwan independence. The law shows the "strong determination of the Chinese people" and will "never allow secessionist forces working for 'Taiwan independence' to succeed at breaking away from the mainland" according to an announcement made by China's Premier Wen Jiabao at the National People's Congress in Beijing.

The Chinese State Council is also planning to increase the country's military budget by 12.6 percent, to US$29.98 billion, for the current fiscal year.
Great Hall of the People
The anti-secession law, as well as the military budget increase will both be discussed during the parliamentary meetings which begin today, and continue for the next 12 days. Over 3,000 delegates assembled in the Great Hall of the People today to listen to Wen's two hour speech and begin discussions.

Taiwanese politicians reacted with disappointment to the planned anti-secession law, and promised protests in the streets of Taipei and Kaohsiung this Sunday. Taiwan's President Chen Shui-bian even threatened to introduce an "anti-annexation" law to oppose China's move.