China to increase military spending to $148 billion

China will significantly increase its defence budget and spend $148 billion on its military this year, second only to the US, a surge driven by escalation in tensions with its neighbours over longstanding territorial disputes, according to a media report.

The increase in military spending comes even as defence budgets at the Pentagon and in many NATO countries shrink. Even the budget for the US military, while more than that of China's, has seen a decline due to budget cuts.

The New York Times cited a report by defence industry consulting and analysis company IHS Jane's, which said that China's People's Liberation Army is gearing up for a surge in new funding and will spend $148 billion on its military this year, up from $139.2 billion in 2013.

Read more