Already with a commanding lead in defense spending when compared to regional neighbors like India, Taiwan and South Korea, China is considering raising its defense spending, citing growing threats to its national security.

A July 26 Reuters report stated:

China needs stronger military forces as it faces growing instability and threats to national security, the ruling Communist Party’s ideological mouthpiece said according to reports in the state media on Wednesday.An essay in the latest issue of Qiushi, or Seek Truth, says China must strengthen its military to guard a peaceful international setting for economic growth, the official China News Service reported. “Destabilizing and uncertain factors are increasing and having a major impact on China’s security environment,” the essay said. “History demonstrates that one cannot rely on others granting peace, and only building a strong military and firm national defense can provide a reliable security barrier,” it added.

According to available statistics, China, with a budget of $65 billion in 2004, ranks second to the United States (which spends over $450 billion by 2004 records) in the world in military spending. Its closest regional competitor is Japan—which presently maintains a non-aggression clause in its national constitution that lawmakers are looking to change—at $45 billion. South Korea, eighth on the list, rings up at $21 billion, based on 2005 statistics. Its next regional competitor, Taiwan, ranking 17, spends just $8 billion, based on 2001 figures. Consequently, China enjoys a powerful lead in the region when it comes to military spending.

So with its economic hegemony and a leading position in the anti-American Shanghai Cooperation Organization set, and its dominance in the Asian region growing, China’s power will increase. However, American inroads into the region have China looking furtively in its rearview mirror. China is concerned about a regional counterweight. Given America’s growing concerns elsewhere, however, we can expect that its ambitions to sew up a commanding influence in the region through a proxy country will wash out. To project Asia’s future, watch China.