“ china lives in a neighborhood where it does n’t have military hardware for , ” geoff raby , who was australia ’s ambassador to china until last year , said in a telephone interview .
” satellite maker rises china north optical - electrical technology co. ( 600435 ) , the maker of military control systems and sensors , rose as much as 9.7 percent in shanghai trading , the biggest intraday gain in more than a month .
china ’s defense spending , the second highest in the world after the u.s. , has risen in tandem with the expansion of its economy and a new focus by the obama administration on the asia- pacific region .
china is also involved in spats with vietnam , the philippines and japan over control of oil- and gas - rich waters and has a lingering territorial dispute with india that erupted into a war in 1962 .
the beijing china plans to increase defense spending 11.2 percent this year as the country ’s expanding global commitments and lingering territorial disputes drive demand for more warships , missiles and fighter planes .
china 's per capita income is below the world average .
since the late 1970s , china has moved from a closed , centrally planned system to a more market - oriented one that plays a major global role .
china continues to pursue an industrial policy , state support of key sectors , and a restrictive investment regime .
measured on a purchasing power parity ( ppp ) basis that adjusts for price differences , china in 2017 stood as the largest economy in the world , surpassing the us in 2014 for the first time in modern history .