According to a report obtained by Reuters from inside Taiwan and previously undisclosed, the Chinese Communist Party (CCP) spent 110 billion yuan (approximately 15.3 billion US dollars) on various exercises in the Western Pacific in 2023, equivalent to 7% of its overall defense budget.
This report, sourced from internal research within the Taiwanese military, provides a rare glimpse for the outside world into the extent of CCP defense spending. With tensions escalating in the region, the Beijing authorities continue to ramp up their military capabilities.
A senior Taiwanese official summarizing the research disclosed that the report “reveals the logic behind the allocation of resources by the other side, as they invest significant resources in attempting to secure control west of the first island chain.” Due to the sensitivity of the matter, this official, along with two other individuals briefed on the report, chose not to be named.
The first island chain roughly extends from Indonesia northeast to Japan, forming an arc that encompasses the South China Sea and East China Sea.
In response to Reuters’ inquiries, the Ministry of National Defense of the Republic of China declined to comment on the specific content and figures but stated that “the significant increase in CCP’s military investment in recent years has indeed had a negative impact on the peace and stability of the region, hindering global prosperity and development.”
The Ministry compiled this report based on reconnaissance of CCP’s military activities in the Bohai Sea, East China Sea, Taiwan Strait, South China Sea, and Western Pacific, as well as intelligence gathered earlier this year.
The report details the various naval and aerial missions carried out by the CCP in these regions in 2023, estimating the costs of fuel and other materials required for each hour of activity. The total cost, as indicated by the research report and officials briefed on it, amounted to 110 billion yuan, covering maintenance, repairs, and personnel expenses.
These three officials who received briefings on the report stated that the research aims to assist Taiwanese decision-makers in understanding how CCP allocates military resources in different regions and in evaluating the “gap” between CCP’s intentions and actual capabilities.
They noted that comparing exercise costs to China’s economy is helpful for Taiwan to assess the risks faced across the Taiwan Strait.
Reuters’ calculations indicate that the 110 billion yuan is approximately 85% of Taiwan’s 2023 defense budget.
While diplomats and experts often view CCP-reported data as opaque and incomplete, the 110 billion yuan accounts for about 7% of the 1.55 trillion yuan (approximately 0.22 trillion US dollars) defense spending reported by China for 2023. In March, CCP announced a 7.2% increase in defense spending for this year, reaching 1.67 trillion yuan (about 0.23 trillion US dollars).
Former captain of the Republic of China Navy Ship Hsiang Yang, and instructor at the Naval Academy’s Military Studies Department, Lu Li-shih, commented, “This is similar to a black hole.” He mentioned that CCP’s defense budget does not specify individual expenditure items, stating that although one can discern a trend, the specifics remain elusive.
The report reveals that various types of CCP military aircraft, including J-10 fighters, H-6 bombers, and drones, flew over 9,200 times in the vicinity of Taiwan in 2023, totaling approximately 29,000 hours in the air. CCP naval vessels, including carriers and destroyers, made around 70,000 voyages, spending over 1.7 million hours at sea.
The report further reveals that 40% of CCP navy voyages occurred in the highly contested South China Sea, 20% in the East China Sea, and nearly 15% in the sensitive Taiwan Strait.
Quoting researcher Jie Zhong from the China Strategic Forecasting Association, Reuters cited observations that this year’s May Joint Sword-2024A exercise demonstrated the CCP’s reinforcement of operational readiness. “The CCP is intensifying its training for encroaching on Taiwan, with more aircraft and pilots now possessing the capability to carry out relevant missions.”
(Translated from Central News Agency)