Ladakh Flash Point

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Xizor

Captain
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A very insightful report.
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To quote from the article
"
The assessment that India’s rising defence expenditure and its improved ranking as a major military spender is majorly driven by tensions and rivalry with Pakistan and China is not entirely correct. Had it been the case, it would have been reflected in India’ changing military expenditure profile in the form of an increased share of procurement, stores and R&D, among other budget heads. As succinctly depicted in Figure 1, the major driver of India’s defence expenditure has been the manpower cost, particularly the pension, which is remotely connected with India’s current rivalry with Pakistan and China. "
 

weig2000

Captain
On the contrary... I think although Indian leadership might be more realistic, the Indian media’s and analysts’s delusions, would become the driving force, creating a situation where the Indian population would push Indian leadership to act, I am not sure there are enough of a sane voice in India to push back on the delusions of media and analysts... they have pushed it way too far already, when their, obvious internal problems are being blamed on China and has a fair amount of agreeing voices, whether these voices are fabricated or not, it will still have an effect on the general population.

As for Japan... I am actually a little doubtful, even though they are essentially a puppet of the US... they know full well they will be on the frontlines and what the Chinese old guard would do if they get the chance for revenge... what happened before and during WW2 is still in the mindset of a lot of people in China... given the chance for pay back we can imagine what the result would be and I am sure the Japanese leadership knows too...

Just to remind, we're talking about a conflict about Taiwan, not a China-India border war here. India media or analysts or people may be highly nationalistic or even delusional about a war between India and China, but this would be a war of option, with huge consequences for India if it chooses to fight against China.

As for Japan, well, it will be between the proverbial rock and the hard place. Japan has no friends or allies in its neighborhood. The US is their security guarantee and spiritual parents. Life without the US is unimaginable for Japan. But fighting directly against China would be hugely consequential, given the history between the two countries and Japan is close to China. So in the end, it will very likely strike a balance: refuse to fight in the front-line citing constitution and history, but support the US logistically and peripherally citing obligation under the mutual defense treaty. It also has the motovation to keep Taiwan separate from China and China weak, if it gets lucky.
 

plawolf

Lieutenant General
So PRC's military budge is 2.5x that of India, but its actual GDP is 6x that of India.

By that measure, China is still not spending proportionally.

That being said, India is paying a huge premium in terms of Graft and foreign equipment. Plus, from an institutional standpoint, Indian military is more of a welfare program, as some 60% of its expenditure goes into salaries and HR. An optimized budget should see something like 30-40% in HR, 15-25% in R&D, and rest in O&M of current fielding.

Maintaining a large land army is a huge disadvantage these days. A large infantry formation can also be characterized as shrapnel fodder.

Ideally, India should dispense with its protectionist trade policies and develop deeper economic ties with Pakistan, alleviating some stress points and creating a win-win.

In regards to China, JAP, ROK, Vietnam are Chinese adversaries on paper. They make a lot of noise, but if you peel back the veneer, you will see that they are hugely dependent on China both from a supply chain and market perspective. Mostly, they are bitchy to China to get some support from US and then using that as bargaining chips with China. This is the game small and weak nations play, and always will play. It is survival.

Even Taiwan talks a lot of shit, but relies on China for like 40% of its GDP.

It's all a show.

China is spending normally whereas India is spending excessively.

You need to remember that while Chinese military expenditure as a percentage of GDP has remained relatively static over the last few decades, the speed at which the Chinese economy has grown has mean the military has been enjoying near double digit percentage growth in absolutely monetary terms over that same period.

You also need to consider the fact that procurement, especially military procurement which is overwhelmingly big ticket capital equipment equivalent items like tanks, planes and ships, takes a long time to build, and your surge capacity is limited.

Doubling your military budget will not yield double the number of tanks, planes and ships you can make. That is because in order to boost output by more than the surge capacity of existing factories, you need to build additional, new factories and/or expanding existing ones. Those takes years to complete, and once they came online, you will effectively also be locked into a higher minimum annual production volume to keep them operating smoothly.

The only exception to that rule might be in the naval arena, and is really more a consequence of the depressed global civilian shipbuilding market leaving massive over-capacity. Which is something the PLAN has taken full advantage of.

Interestingly, China had also been making significant investment in additional production capabilities in key areas like aircraft production and nuclear sub production.

With Chinese GDP growth rates slowing, and once those new expanded production facilities come online, we may well see an actual increase of the military budget as a percentage of GDP, but such a rise will be very modest, and may even be masked by reporting rounding.

I think a lot will ride on how the new Biden administration behaves towards China. If he pursues a reset in relations, Beijing may well disguise or mask an increase in military spending as a percentage of GDP to not trigger the Americans. But if Biden continues Trump’s confrontational approach, China may well make a point of raising its military spending percentage to send a message/warning.

But back on topic, a key and fundamentally important difference between Chinese and Indian defence spending is that Chinese military spending is overwhelmingly domestic, whereas a huge percentage of the Indian defence budget is spent on foreign arms.

When military spending is domestic, it actually contributes to growth much like any other form of large scale government consumption based spending, which usually yields a multiplier effect. Money spent on imported foreign arms flows directly out of your economy and generals zero economic benefit.

As such, so long as it is not wastefully excessive (which it isn’t by a long shot), Chinese defence spending actually should be an overall contributor and accelerator to Chinese economic growth; whereas Indian defence spending may well be acting as a brake on the Indian economy if the net multiplier gains from the domestic portion of its defence spending is not large enough to offset the direct economic outflows from foreign arms purchases.
 

localizer

Colonel
Registered Member
China is spending normally whereas India is spending excessively.

You need to remember that while Chinese military expenditure as a percentage of GDP has remained relatively static over the last few decades, the speed at which the Chinese economy has grown has mean the military has been enjoying near double digit percentage growth in absolutely monetary terms over that same period.

You also need to consider the fact that procurement, especially military procurement which is overwhelmingly big ticket capital equipment equivalent items like tanks, planes and ships, takes a long time to build, and your surge capacity is limited.

Doubling your military budget will not yield double the number of tanks, planes and ships you can make. That is because in order to boost output by more than the surge capacity of existing factories, you need to build additional, new factories and/or expanding existing ones. Those takes years to complete, and once they came online, you will effectively also be locked into a higher minimum annual production volume to keep them operating smoothly.

The only exception to that rule might be in the naval arena, and is really more a consequence of the depressed global civilian shipbuilding market leaving massive over-capacity. Which is something the PLAN has taken full advantage of.

Interestingly, China had also been making significant investment in additional production capabilities in key areas like aircraft production and nuclear sub production.

With Chinese GDP growth rates slowing, and once those new expanded production facilities come online, we may well see an actual increase of the military budget as a percentage of GDP, but such a rise will be very modest, and may even be masked by reporting rounding.

I think a lot will ride on how the new Biden administration behaves towards China. If he pursues a reset in relations, Beijing may well disguise or mask an increase in military spending as a percentage of GDP to not trigger the Americans. But if Biden continues Trump’s confrontational approach, China may well make a point of raising its military spending percentage to send a message/warning.

But back on topic, a key and fundamentally important difference between Chinese and Indian defence spending is that Chinese military spending is overwhelmingly domestic, whereas a huge percentage of the Indian defence budget is spent on foreign arms.

When military spending is domestic, it actually contributes to growth much like any other form of large scale government consumption based spending, which usually yields a multiplier effect. Money spent on imported foreign arms flows directly out of your economy and generals zero economic benefit.

As such, so long as it is not wastefully excessive (which it isn’t by a long shot), Chinese defence spending actually should be an overall contributor and accelerator to Chinese economic growth; whereas Indian defence spending may well be acting as a brake on the Indian economy if the net multiplier gains from the domestic portion of its defence spending is not large enough to offset the direct economic outflows from foreign arms purchases.


I think China's military industrial complex is also pretty innovative and trains lots of young engineers/scientists. Which is also added value to investment.

Pretty much all the Indians run off to the West when given the chance and never come back.
 

Mt1701d

Junior Member
Registered Member
Just to remind, we're talking about a conflict about Taiwan, not a China-India border war here. India media or analysts or people may be highly nationalistic or even delusional about a war between India and China, but this would be a war of option, with huge consequences for India if it chooses to fight against China.

As for Japan, well, it will be between the proverbial rock and the hard place. Japan has no friends or allies in its neighborhood. The US is their security guarantee and spiritual parents. Life without the US is unimaginable for Japan. But fighting directly against China would be hugely consequential, given the history between the two countries and Japan is close to China. So in the end, it will very likely strike a balance: refuse to fight in the front-line citing constitution and history, but support the US logistically and peripherally citing obligation under the mutual defense treaty. It also has the motovation to keep Taiwan separate from China and China weak, if it gets lucky.
Yea I know, I thought the scenario moved to, in the event of a conflict between PRC and Taiwan, what other countries would support Taiwan in a way similar to the Korean War UN coalition... So I was just giving me 2 cents on the likelihood of Indian support and Japanese actions.

I was just thinking that in the event that the eastern side of China is busy with possibly invading Taiwan and fending the US-led five eye... the Indians especially their media would be going into over-drive writing stories about how China will fail and be balkanised... and being ever vulture-like opportunists the Indian leadership, might be influenced by the population who would in turn be influenced by the delusions of the media and analyst, to pursue a war or at the very least something akin to an active/hastened ‘forward policy’ under the guise of Tibet liberation or Taiwan freedom or helping the five eyes end the CCP... all the while licking their lips at taking land from China... if we are talking about the Indian going at it alone against China, with possibly and a big possibly the support of the US, then I would say even if the population is delusional enough thanks to their media... the Indian leadership simply wouldn’t have the balls to actually act, at least in the current times...

As for Japan... yea I agree...
 
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