Behind China's defence budget: Ambition constrained by corruption and inefficiency

New Delhi: China's military spending surge is accompanied by openly acknowledged structural weaknesses and systemic challenges that raise critical questions about the transparency and practical effectiveness of Beijing's defence allocations.

In recent years, as per the Stockholm International Peace Research Institute (SIPRI), China's official defence budget has expanded by approximately 7 per cent annually, reinforcing Beijing’s strategic ambitions. 

Yet behind headline numbers lies a persistent opacity, raising doubts about the real impact of such vast expenditure.

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Transparency remains notably lacking, with significant undisclosed defence costs. SIPRI data indicates an average annual increase in Chinese military spending of around 7 per cent, second only to the United States in global defence expenditure. However, international observers caution these official figures underestimate true outlays, obscuring expenses tied to military R&D, infrastructure projects, and dual-use technologies.

Beijing recently defended its increased military spending as “entirely necessary” following a suggestion by the US President, Donald Trump, supported by Russian President Vladimir Putin, that China, Russia, and the US cut their defence budgets by half. 

Chinese Foreign Ministry spokesman Lin Jian described the spending as essential for safeguarding national sovereignty and security, maintaining world peace, and also stating that China does not engage in arms races.

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Perhaps most concerning is China's own admission of corruption as a critical internal obstacle within its military apparatus. President Xi Jinping's extensive anti-corruption campaigns within the People's Liberation Army (PLA) explicitly recognize this vulnerability, notably highlighted by high-profile convictions including former Central Military Commission Vice-Chairmen Xu Caihou and Guo Boxiong. 

Chinese state media openly acknowledge that corruption severely undermines efforts to modernise and streamline the PLA, describing it as a "systemic threat."

Corruption’s impact is especially visible within military procurement processes. The sentencing of Sun Bo, former general manager of the China Shipbuilding Industry Corporation, to 12 years for corruption demonstrates the tangible challenges plaguing defence acquisition. 

Publicly documented issues extend to major projects like the Type 003 aircraft carrier and J-20 fighter jets, both of which have faced delays attributed to procurement mismanagement, technical setbacks, and quality-control issues.

Operational readiness also remains a publicly discussed challenge. China admits frontline troops encounter substantial difficulties, from logistical bottlenecks to insufficient combat preparedness. 

Official communications through PLA-affiliated outlets frequently underline these weaknesses, particularly evident along the challenging terrain of China's disputed borders. The PLA’s own assessments emphasize ongoing reforms to close these gaps but concede substantial obstacles remain.

These acknowledged shortcomings influence regional and global strategic calculations, offering critical insights for nations navigating relations with Beijing.

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Understanding the actual state of China's military effectiveness prevents both overstated alarmism and dangerous complacency, allowing international actors to calibrate diplomatic and military strategies accordingly.

While China's expanding defence budgets undeniably signal heightened ambitions, publicly acknowledged challenges regarding transparency, corruption, procurement inefficiencies, and operational readiness offer essential context. Accurately assessing China's military capabilities demands a nuanced perspective, crucial for informed strategic responses in an increasingly tense geopolitical landscape.