China on Wednesday announced a 12.2 per cent increase in its defence budget taking the military spending for this year to $132 billion, far above India's $36 billion.
Amid deepening row with the United States over disputed South China Sea where American ships challenged China's claims of sovereignty, Chinese military has deployed its latest anti-ship cruise missiles which experts say can form a powerful defence line at sea.
China will increase its defence spending by "around seven per cent" this year, as it vowed to guard against "outside meddling" in its territorial disputes.
The 2.3 million strong People's Liberation Army, the world's largest, adopts a more aggressive posture with massive structural revamp.