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China's national defense expenditure continues to climb. In a 2006 national defense white paper -- the fifth of its kind since 1998 -- the Chinese government makes the increase and use of its defense expenditure transparent.

Last year, upgrading the army for self-defense continued to be the priority for the Chinese military.

Defense authorities set military development spending subject to the country's overall growth.

In the white paper on national defense released at the end of last year, the 2006 defense budget reached US$35 billion. A 14 percent increase on the previous year.

Compared with overall expenditure, the defense budget is proportionally decreasing.

Maj. Gen. Qian Lihua, Dep. director Foreign Affairs Office, Min. of Defense, said, "The increase of defense budget has nothing to do with arms build-up. We are not trying to go arms race with any foreign forces."

The white paper says the budget is equally distributed over three areas -- soldiers' pay, training and equipment.

China has gradually increased its defense expenditure in line with its economic development. The increase aims to enhance the country's formerly weak defense base.

Maj. Gen. Qian Lihua said, The military build-up is aimed at improving the quality of the PLA to safeguard China's sovereignty, territorial integrity as well as its national interests and rights. The spending increase also aims to provide a security guarantee for social and economic development."

From 1990 to 2005, China's average annual defense expenditure increase was just over 15 percent.