China plans to increase its defense budget by 17.8 percent to $44.94 billion in fiscal 2007 from the previous year's actual level. The boost, announced a day before the start of an annual session of the National People's Congress, is the largest since a 19.4 percent jump in fiscal 2002. China's defense spending has been on a double-digit increase for 19 consecutive years since fiscal 1989. China insists that it has neither the wherewithal nor the intention to start an arms race with any country, and does not and will not pose a threat to any country. But its galloping defense budget increase is certain to cause a concern to Japan, the United States and other neighboring nations.

Beijing's defense spending announcement followed its January announcements of the deployment of new J-10 jet fighters and the successful destruction of an aging weather satellites with a missile. China says greater military spending is necessary to improve salaries and conditions for service members, and to bolster the country's defense capabilities by upgrading military equipment, improving information-warfare technologies and funding more military exercises.

China apparently hopes to increase its naval presence in international waters and build up its forces facing Taiwan. President Hu Jintao, who has no military background, may be trying to boost his support among the military leadership.