By Giri Rajendran, Research Associate for Defence and Economics
In preparing the latest edition of the Military Balance, launched last week in London and this week in the United States, the IISS team behind the book decided to try an experiment. Since the United States and China are the world’s biggest spenders on defence, and China a distant second, we wanted to see when both countries’ defence spending might converge.
We based our projections on several hypothetical scenarios, including one in which the trend rates of defence-spending growth over the past decade in the US and China were to continue, and another in which Chinese defence-spending growth was constrained by an economic slowdown. (Looking at past examples, particularly the 1980s Latin American debt crisis, we assumed that China’s economy would start booming again by 2031.) The US budget sequester was another variable we had to factor in.