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 From the Washington Post:

China’s defense spending is far outpacing that of other nations in its region, and its aggressive development of ballistic and cruise missiles and attack submarines threatens to upset the balance of power in Asia and beyond, according to a Pentagon report released yesterday. China’s official military budget grew nearly 18 percent in 2008 to $60 billion, although the Pentagon estimates spending at $105 billion to $150 billion. Its 2005 military budget was 10 times as high as the 1989 budget, and if current trends continue, the 2009 budget will nearly double the 2005 figure, according to the report, mandated annually by Congress… The report also says China’s People’s Liberation Army is acquiring large numbers of "highly accurate" cruise missiles and modernizing its long-range ballistic missile force by making it more mobile and, therefore, more secure. "China has the most active land-based ballistic and cruise missile program in the world," it states. China continues to build up an arsenal of short-range missiles along its coast opposite Taiwan … The longer-range DF-31A missile, deployed in 2007, has a range of almost 7,000 miles and "can target any location in the continental United States," the report says …