Guys, please take note of China's next leader------- Xi Jin Pin.
He is much tougher than Hu Jin Tao, he also vow to expand the military. I would say that under Xin Jin Pin's adminstriation. The defence budget could go as high as 5 % of China's GDP.
That is perfectly OK, because China has too much money now and need to spend them instead of letting them get chew away by inflation.
Here is some info regarding Xi Jin Pin, you guys can see his personalities and style!
Xi Jinping - Wikipedia, the free encyclopedia
The China govt has enough USD. But China govt dare not spend too much RMB!
It is afraid of inflation!

PLA is still in use J-7 aircraft and 59-type tank. PLA soldiers took very little salary.

