Defense spending and safe environment of China: Empirical research of defense spending of China based on grey incidence choice

Economic condition and safe environment are two main factors which affect defense spending. The level of economy decides basic defense demand, and changing of safe environment will lead to corresponding change of defense spending to face threat. The reacting model of military expenditure shows that military expenditure of China is on the lower level, and from the reacting parameter of the safe environment, defending strategy of China is mainly for defense.