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Despite a 7.5 percent increase over last year, China's proposed military budget for 2010 (518.577 billion yuan) is only 1.4 percent of its gross domestic product (GDP), much lower than in some developed countries. This suggests that China's military forces can only be defensive in nature and could never pose a threat to any country.
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Still, the Chinese government, while cutting its increase of defense budget, has done a great deal to increase the transparency of its military spending by putting it into the government budget, which must be examined and adopted by the National People's Congress. China has also published a defense white paper every year since 1998 to detail its military budget and actual uses. As a member of the United Nations' Military Budget Transparency Mechanism, China has handed in a military budget report every year since 2007.
China has done this to convince the world that this country has no intention of threatening any other country or assert itself militarily on the international stage. We maintain a moderately strong military just to guarantee our peaceful development.
(China Daily 03/05/2010 page9)