Like many aspects of its defence posture, China keeps its annual defence budget secret, nevertheless, it is possible to make an accurate estimate regarding what the country spends annually on defence. To this end, we expect China's defence budget to reach USD132bn in 2014. By 2018, we expect China's defence budget to reach USD187bn. We have given China an overall security risk rating of 74 for Q414. On average, the country has scored an overall security risk rating at the same level for the period January 2009 until Q414. We believe China faces a low risk of becoming involved in a major interstate conflict. Similarly, it faces a low risk of experiencing a major terrorist attack, although its susceptibility to criminal activity remains high.
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