Beijing - China announced another 17.6-per-cent hike in its annual military budget on Tuesday, amid US concern following similar large increases in recent years. The draft defence budget for 2008 is set at 417.769 billion yuan (57.229 billion dollars), up 62.379 billion yuan from 2007, a spokesman for China's nominal parliament told reporters.
The rise continues the government's policy of "moderate increases" in defence spending in recent years, said Jiang Enzhu, spokesman for the first annual session of the 11th National People's Congress (NPC).
"These increases were of a compensatory nature to make up for a weak defence foundation," Jiang said.
The higher budget for the People's Liberation Army (PLA) is needed for pay rises, extra costs of rations and fuel, training, and new arms to "enhance the military's ability to conduct defence operations under IT conditions," he said.
Jiang said the recent rises in the annual budget were significantly lower than the increases in government revenue.
China's military budget remained below most other major military powers as a percentage of gross domestic product, he said.
The 3,000-member NPC is scheduled to discuss and approve the national budget during its 13-day annual session, which begins on Wednesday.
Many Western critics claim China's real military spending is much higher than its budget figure, with some US analysts estimating actual military spending at up to three times the budget figure.
The budget announcement came one day after the Pentagon released an annual report saying that China's military build-up could fuel instability in Asia and create confusion about Beijing's intentions.
"The lack of transparency in China's military and security affairs poses risks to stability by increasing the potential for misunderstanding and miscalculation," the report said.
Chinese foreign ministry spokesman Qin Gang said China's military modernization was "peaceful and defensive and the US report was a "serious distortion of facts."
"This report advocates China's military threat," Qin told reporters. "It is a serious distortion of facts, an attempt to interfere in [China's] internal affairs, and violates the norms of international relations."
Qin said the Chinese government had made "solemn representations" to the United States over the report.
The Pentagon report said China has been modernizing its nuclear force by fielding new DF-31 and DF-31A intercontinental ballistic missiles and is upgrading its capability to wage in war in the Taiwan Strait.
Jiang on Tuesday reiterated China's opposition to plans for a referendum in Taiwan later this month on the island's UN membership.
He warned that President Chen Shui-bian and other leaders were "destined to pay a dear price" if they moved towards formal independence for the island that China's ruling Coomunist Party regards as a breakaway province.
