tomahawk6 said:
We got into an arms race with the Soviet Union and their economy collapsed.China cannot afford an arms race and if the economy collapses we might get lucky and see a revolution.
You're right that an arms race, à la America vs the USSR, would be disastrous for the Chinese Communist government which is why, I
think, China doesn't plan to enter one.
China is already spending 2.1% of its GDP on defence (vs 4.7% for the USA) which, as I have said several times, is about the
sustainable rate that aspiring "leading middle powers" should manage. Americans, individually, through their taxes, spend three times as much as Chinese individuals do to support the military. But I doubt China can afford much more.
The fate of the current government rests on
social harmony and that depends on jobs/prosperity and hope for the future. The Chinese still believe, according to the (limited) data I have seen that their children and grandchildren will have better, more prosperous lives than they do; Americans, again according to the polls I have seen, no longer believe that. They did, in the 1930s, '50s and '70s, and even into the 1990s, but not now. So, if the Chinese can
contain America in Asia
and keep the Chinese manufacturing juggernaught going - which requires growth in domestic demand - then they ought to be able to not worry about what is, arguably,
excessive American defence spending.
I have argued, elsewhere, that in purely economic terms defence spending is not only unproductive, it is
counterproductive (lost opportunities and all that). American defence spending is
less counterproductive than e.g. Australian, British and Canadian military spending because of the enormous US defence R&D sector that does push technological advantages into the private/productive sector but it is still wasteful. America is spending 4.7% of GDP on defence because it is providing free "services" to China - like maintaining freedom of the seas and countering piracy, etc. (China makes a contribution, but it is far, Far, FAR short of a
fair share.) How long can America afford to spend 4.7% of GDP on defence
and have an advanced social welfare state, which Americans appear to
want demand?