China's is now the world's second largest defence spender, something that would surely alarm its neighbours who will want to speed up the modernisation of their armed forces as well.
The People's Liberation Army Air Force [PLAAF] is a big beneficiary of this money. It has inducted the Chengdu Aircraft J-10 [official video above] and Chengdu J/F-17 fighters [below], and is believed to be having trials for the J-10B, an upgraded version of the multi-role fighter.
Ongoing military programmes within China re reportedly looking into fifth generation fighter, unmanned combat aerial vehicle programmes, new attack helicopters, airborne early warning and control [AEW&C] systems, and high-altitude long-endurance UAVs.
China's neighbours like Japan and South Korea have been increasingly wary of Beijing's plans to modernise its air force. Japan has renewed its efforts to procure the Lockheed Martin F-22 Raptor from the USA to modernise its air force, while Australia said earlier this year that China could become a maritime threat.