One of the scariest scenario in the world today is the showdown between US and China over Taiwan and the juxtaposition of economic concerns with China playing the card of reinvestment of US dollar to bring it down. Well, China is considering the change in its investment pattern for the USD 1.3 trillion deposits… so, is China readying for a showdown over Taiwan? It has hiked its Defence Budget by USD 45 Billion!
Defense analysts seems to agree that China’s primary focus is Taiwan, and also to be able to create a deterrent to a military intervention by the United States. China has numerous missiles aimed at Taiwan despite America, which is obliged to defend Taiwan militarily, expressing its concern.
John D Negroponte, the newly-appointed deputy secretary of state currently on a tour of Asia, told a news conference in Beijing on Sunday that China needed to be less secretive about its military spend.
However, he was forced on the backfoot by Chinese officials who criticised him over the US agreeing to sell $400 million worth of air and ground missiles to Taiwan and lobbied hard to reverse the deal.
China will be spending the budgetary increase on missile systems, electronic warfare and other hi-tech items. News agency Xinhua has reported that China’s 2.3 million troops have been awarded a handsome pay rise, with salaries expected to rise at least 20 per cent from July.
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