Chinese Nationalism and Money

As of this month, China announced that their military budget will increase to $131.6 billion this year.  Comparatively, the USA's military budget is decreasing this year to $863.5 million.  The reason behind such an increase for the Chinese is that it aligns with the rapidly growing economy it already has, however, that's assuming that the economy will grow at the rate the government thinks it will.  The numbers they projected last year and the actual numbers they produced didn't match up.  China's economy relies on a high export rate of materials and investment led growth, but even Premier Li Keqiang believes reform and balance needs to occur.

According to Forbes.com: So why do we have to worry about a China that will not be able to afford its military?  Generals and admirals, who seem to have wide influence in Communist Party circles these days, just might not scale back their plans.  They could instead think they have a limited window to achieve long-held goals, both to take territory from neighboring countries and to make the international waters of the South China Sea an internal Chinese lake.  China’s 'senior commanders,' the Economist reports, 'are spoiling to show what their shiny new stuff can do.'

As we've read in our textbook, this is a problem to the US because of China's show of nationalism that has the potential to get ugly.

Get it.

http://www.forbes.com/sites/gordonchang/2014/03/16/china-cant-afford-its-military-thats-why-we-should-really-worry/