Rumours: China planning huge spending increase on military
DETERMINED to close the arms gap between itself and the US, China is reportedly set to announce a huge increase in military spending.
The ABC has reported Chinese military insiders are predicting an increase of up to 20% on last year's budget of $200 billion.
Most of the money will reportedly be used to modernise China's weaponry.
China has been stridently criticised by its regional neighbours and the US for its island-building and increasingly provocative military actions in the disputed South China Sea.
Meanwhile, it plans to lay off 1.8 million construction workers in the wake of poor economic growth.