China will raise official defence spending by 17.6 per cent to Rmb418bn in 2008, with officials saying the latest in a long series of double-digit rises was needed to pay salaries and meet the cost of rising inflation and training and equipment needs.

The planned increase in the public budget for the People's Liberation Army, though broadly in line with the 17.8 per cent increase announced last year, will fuel debate about China's intentions for its increasingly potent military forces.