Global Military Landscape: Russia's Military Buildup and China's Modernization Efforts

Wed 12th Feb, 2025

A recent report by the International Institute for Strategic Studies (IISS) highlights significant trends in global military expenditures, driven primarily by the ongoing conflict in Ukraine and China's strategic ambitions. While Russia continues to bolster its military capabilities, it faces substantial losses on the battlefield, particularly in Ukraine.

The IISS report notes that Russian forces have sustained higher casualties than their Ukrainian counterparts, although they have managed to compensate for these losses more effectively. Many Ukrainian units are currently operating below their intended strength, which complicates their ability to sustain prolonged engagements.

In terms of military losses, the report indicates that Russia has faced considerable setbacks, estimating the loss of approximately 1,400 combat tanks over the last year. Both sides are experiencing significant wear and tear on their military capabilities, but Ukraine faces greater challenges in maintaining troop levels.

Looking ahead, the IISS anticipates that Russian troop losses may continue to rise if offensive operations in Ukraine persist. Despite Russia's efforts to enhance its military capacity, there remains a notable shortage of armored vehicles. On the other hand, Ukraine has reportedly achieved greater freedom of movement in the Black Sea, establishing a de facto secure maritime corridor, although it struggles to counter aerial threats effectively.

European production of military equipment for Ukraine is on the rise, particularly in response to the increased demand for artillery. The IISS highlights that Europe has significantly expanded its production capacity, with projections indicating that it could reach a capacity of two million 155mm artillery shells annually by the end of 2025. This development comes after the European Union's failure to meet its commitment to supply one million shells per year.

In contrast, Russia's defense spending surged by more than 40% last year, accounting for approximately 6.7% of its GDP. This increase surpasses the combined military budgets of all European nations when adjusted for purchasing power. Despite the impact of Western sanctions, Russia's economy has shown resilience, with government spending rising while maintaining a manageable budget deficit.

Globally, military expenditures rose by 7.4% last year, with Africa south of the Sahara being the only region to show no increase. Germany, in particular, has increased its military budget by over 20%, including military assistance to Ukraine, positioning its defense budget higher than that of any other European country. However, a significant disparity remains within NATO when comparing U.S. spending to that of European allies.

The total military expenditure of NATO currently stands at approximately $1.44 trillion, with European members contributing around $442 billion, which represents less than one-third of the total. If all European NATO members were to raise their defense budgets to 3% of their GDP, their combined share would increase by more than $250 billion.

China's military budget, estimated at around $235 billion, has seen a 7% increase in the past year. This figure represents over 44% of total military spending in Asia. Moreover, the Chinese military is undergoing a significant reorganization and modernization initiative, with the development of new aircraft types, the testing of a third aircraft carrier, and the construction of a fourth carrier appearing to be underway.

In summary, the global military landscape is witnessing a substantial shift, characterized by heightened defense spending and modernization efforts in response to ongoing conflicts and geopolitical tensions. The implications of these developments are likely to shape international relations and defense strategies in the years to come.


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