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China's Military Modernisation Speedrun - Budgets, Industry, and Purchasing Power Parity

I think it's fair to say that the days of Moscow being the hub of the world's second most powerful conventional military are at an end. Now, that power rests in Beijing. The PLA's budget is vastly larger than Russia's but a mere fraction of what the US spends. Despite that, China has gone through an incredibly rapid military modernisation over the last two decades, building new platforms and fielding new technologies so quickly that the gap between its capabilities and the USA has narrowed significantly. How? Today I look at the Chinese military budget, industry, and the wonders of purchasing power parity. Patreon:   / perunau   Timestamps: 00:00 -- Opening Words 00:07 -- Russia Stronk? 00:41 -- What about the PRC? 01:07 -- Where is all this coming from? 01:39 -- Capability Revolution 02:11 -- What Am I Covering? 03:45 -- Caveats 04:20 -- History 04:23 -- A Revolutionary Army 05:45 -- Contraction and Expansion 07:06 -- Force In Transition 08:21 -- Three Milestones 10:05 -- What's in a Budget? 10:12 -- Inclusions and Exclusions 11:27 -- The Paramilitary Factors 12:23 -- Meet the 中国人民武装警察部队 12:59 -- Chinese Paramilitaries 15:43 -- Inclusions and Exclusions 16:55 -- Building a better budget - IISS method 18:27 -- Getting Closer? 19:12 -- What's a Dollar Worth 22:04 -- Problems with PPP for Military Spending 23:26 -- Creating A defence PPP Index 25:13 -- The Global Picture 27:44 -- Industry 31:10 -- The SOE Problem 33:39 -- Black Holes and Questions 35:47 -- Progress & Momentum 36:06 -- The Spending Balance 37:44 -- Legacy Systems 39:56 -- The Buildup Benefits 41:18 -- Catching up is a curve 42:40 -- Does the line go up forever? 46:53 -- The Closing Picture 47:59 -- Conclusions 49:35 -- Channel Update 50:34 -- Scam Warning Caveats: At one point I mention that China was the second nation to field a 5th generation fighter with its J-20. That's lazy wording on my part as the F-35 is a multinational project. I hope my intention in that statement was clear. As always - this video was produced on the basis of imperfect information, though the sources relied on or discussed are largely captured in the source list below. This video has been produced to help explain the pace of Chinese military modernisation and give some context to how it has managed to rapidly catch up with other powers. It is my hope that it is taken in the spirit in which it is intended. I accept that this video, out of necessity, simplifies a range of elements, ranging from the interaction between SOEs in the PRC to the specific budgetary arrangements that are in place in China. In this video I reference a range of methodologies to try and more accurately compare the value of the PRC defence budget with others (such as Russia or the USA). These examples should be considered approximate, and use methodologies set out in the sources below - I do not personally endorse any given method - they are used to illustrate the concepts involved. Sources: PRC 2019 defence white paper: https://english.www.gov.cn/archive/wh... Assessing Chinese defence spending: proposals for new methodologies (IISS) - https://www.iiss.org/blogs/research-p... China’s Military: The People’s Liberation Army (PLA) - CRS https://sgp.fas.org/crs/row/R46808.pdf Understanding China’s 2021 Defense Budget - CSIS https://www.csis.org/analysis/underst... Debating defence budgets: Why military purchasing power parity matters - Peter Robertson - https://cepr.org/voxeu/columns/debati.... A NEW ESTIMATE OF CHINA’S MILITARY EXPENDITURE - SIPRI https://www.sipri.org/sites/default/f... China’s military might is much closer to the US than you probably think- https://theconversation.com/chinas-mi... World military expenditure passes $2 trillion for first time - SIPRI - https://www.sipri.org/media/press-rel.... Measuring Hard Power: China’s Economic Growth and Military Capacity - Robertson & Sin - https://ideas.repec.org/a/taf/defpea/... China Naval Modernization: Implications for U.S. Navy Capabilities—Background and Issues for Congress - CRS - https://sgp.fas.org/crs/row/RL33153.pdf OECD PPP Data (retrieved week of 15/08) - https://data.oecd.org/conversion/purc... The known unknowns of China’s defence budget - Frederico Bartels - https://www.aspistrategist.org.au/the...