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:https://www.patreon.com/PerunAUTimestamps:00:00 — Opening Words00:07 — Russia Stronk?00:41 — What about the PRC?01:07 — Where is all this coming from?01:39 — Capability Revolution02:11 — What Am I Covering?03:45 — Caveats04:20 — History04:23 — A Revolutionary Army05:45 — Contraction and Expansion07:06 — Force In Transition08:21 — Three Milestones10:05 — What’s in a Budget?10:12 — Inclusions and Exclusions11:27 — The Paramilitary Factors12:23 — Meet the 中国人民武装警察部队12:59 — Chinese Paramilitaries15:43 — Inclusions and Exclusions16:55 — Building a better budget – IISS method18:27 — Getting Closer?19:12 — What’s a Dollar Worth22:04 — Problems with PPP for Military Spending23:26 — Creating A defence PPP Index25:13 — The Global Picture27:44 — Industry31:10 — The SOE Problem33:39 — Black Holes and Questions35:47 — Progress & Momentum36:06 — The Spending Balance37:44 — Legacy Systems39:56 — The Buildup Benefits41:18 — Catching up is a curve42:40 — Does the line go up forever?46:53 — The Closing Picture47:59 — Conclusions49:35 — Channel Update50:34 — Scam WarningCaveats: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…