US turns to tech against rivals China, Russia as global military spending hits US$2 trillion
World military spending surpassed US$2 trillion for the first time last year, with the US shifting its focus to new technologies over large-scale spending on legacy systems.
Figures released on Monday by the Stockholm International Peace Research Institute (SIPRI) showed countries around the world were boosting their defence budgets, leading to the seventh consecutive rise in annual spending.
In the United States, funding for military research and development rose by 24 per cent between 2012 and 2021, while arms procurement fell by 6.4 per cent over the same period. US spending on both decreased last year in real terms because of rising inflation.
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There was however a smaller drop of just 1.2 per cent for R&D compared to a 5.4 per cent fall in weapons purchases in last year's total US spending of US$801 billion.
"The increase in R&D spending over the decade 2012-21 suggests the United States is focusing more on next-generation technologies," said Alexandra Marksteiner, a researcher with SIPRI's military expenditure and arms production programme.
"The US government has repeatedly stressed the need to preserve the US military's technological edge over strategic competitors."
Nuclear-related spending saw the largest increase in US military budget items, reflecting Washington's planned overhaul and modernisation of its nuclear arsenal, the report said.
US officials have repeatedly said they need to develop more next-generation weapons to maintain an edge over rivals China and Russia.
The five biggest spenders - the US, China, India, Britain and Russia - together accounted for 62 per cent of military expenditure in 2021.
Outside the top five, Japan's expenditure rose by 7.3 per cent to US$54.1 billion - its highest annual increase since 1972. Australian military spending also increased last year, by 4 per cent to US$31.8 billion.
According to SIPRI senior researcher Nan Tian, concerns about China's rising power have become a major driver of military spending in both countries. He pointed to examples such as Australia's future US$128 billion nuclear-powered submarines as part of its Aukus security agreement with the US and Britain.
"China's growing assertiveness in and around the South and East China seas have become a major driver of military spending in countries such as Australia and Japan," he said.
China, which made up 14 per cent of the world's total, allocated an estimated US$293 million to its forces, an increase of 4.7 per cent compared to 2020, in the country's 27th consecutive year of growth in military spending.
Third-placed India's spending was up by 0.9 per cent on 2020, during a period of ongoing tensions and border disputes with its neighbours China and Pakistan which occasionally spill into armed clashes. India was prioritising the modernisation of its armed forces and self-reliance in arms production, the report said.
SIPRI found Russian military expenditure rose by 2.9 per cent last year in the run-up to its war against Ukraine, with the national defence budget line revised upwards over the course of the year.
The line item - around three-quarters of Russia's total military spending - includes operational costs as well as arms procurement, and finally landed at US$48.4 billion, 14 per cent higher than budgeted at the end of 2020, according to the report.
In Ukraine, military spending has grown by 72 per cent since Russia's annexation of Crimea in 2014, as part of Kyiv's efforts to strengthen defences against Moscow. Expenditure fell last year to US$5.9 billion but still accounted for 3.2 per cent of Ukraine's GDP.
In Europe, Britain and France each moved up two ranks, becoming last year's fourth and sixth largest spenders, respectively.
This article originally appeared on the South China Morning Post (SCMP).
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