China renewed a threat to take Taiwan by force and cited the United States as a potential threat in an official national defense "white paper" made public by the State Council, the Associated Press reports. "Hegemonism and power politics [by the U.S.] remain the main threats to world peace and stability." The paper criticized the U.S.-Japan security treaty as "an infringement upon and interference in China's internal affairs. And while renewing a pledge to seek peaceful unification with Taiwan, the paper emphasized Beijing "will not commit itself not to resort to force."

China's actual defense spending totaled more than $30 billion dollars [240 Yuan], three times the figure cited in the official "white paper" by Beijing authorities, according to the Defense ministry of the Republic of China on Taiwan, reports the China News Agency. The ROC estimates that the official figure of 80 billion Yuan failed to account for expenditures such as the armed police and cultural, health-related and scientific expenditures.

China's national defense "white paper" earned praise from some American scholars as a "step forward" in increasing openness, reports the Washington Post. Other U.S. defense experts say it contains statistics that are not taken seriously, such as the defense budget which is they believe is at least three times higher. The Post adds, the paper's statistics on weapons sales is "significantly lower" than Western analysts estimate.

Reporting on a U.S. House International Relations Committee hearing, the China News Agency reports senior State Department official, Martin Indyk, admitted that China continues to send weapons and weapons related technology to Iran and Libya. When questioned by Congressman Dana Rohrabacher, Indyk admitted the U.S. has evidence that mainland China and entities within Russia continue to provide weapons of mass destruction and weapons components to both the Iranians and Libyans.

Military officials in Beijing and analysts abroad believe it will be many years before there is more than "incremental" change in People's Liberation Army ownership of private businesses, the Wall Street Journal reports. Several PLA officials say that lucrative companies ­ many related to the acquisition and development of weapons systems and related technology ­ owned by the powerful Headquarters of the General Staff will be exempt from the new rules by the central government. Companies such as the five-star Palace Hotel in Beijing and China Poly Group, a weapons dealer and real estate firm, will keep their military ties.

The PLA is considered the world's biggest business empire. The Journal cites the recent sale of a PLA-owned restaurant to a private entrepreneur. The new owner pays the PLA a $1,200 monthly fee to "rent" the restaurant's name. "The military stands behind everything we do," says an employee.

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All Rights Reserved.

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