Let me state this once again, China's annual military expenditure is only 1/10 that of the U.S., to claim that in the next few years China can build up a naval force that will surpass the U.S. navy in number and in strength is not only ludicrous, it defies logic and common sense.
Let's examine your statement, shall we. The U.S. has a base military budget of $439.3 Billion, not including the wars in Iraq or Afghanistan.
China's official budget is $35.3 Billion, but is it really? The U.S. government believes that figure is close to $90 Billion. Also, not included in the budget is military acquisitions, such as destroyers and aircraft, nor research and development costs, revenue from arms sales, etc. Even a modest estimate of comparable budget terms to the U.S. puts the Chinese budget at $65 Billion, making China the second largest military spender in the world, behind the U.S.
Further, China's military spending has posted double digit percentage increases nearly continuously since the early '90's with no likelihood of slowing (even as high as 28.8% in 1994). Even in China's official budget, 30% is allocated to new weapons systems, on top of the non-budget weapons systems sourced from foreign suppliers. Now, China is well known for outproducing manufactured goods less expensively than other countries including the U.S. and has virtually shut out several whole sectors of the American economy in the process. The point being that China can produce things much cheaper even within their budget than the U.S., so one must be cautious to weigh the purchasing power of the Chinese military when considering that budget for building new weapons systems domestically, if your sole source of criteria is published budget figures.
What does all this mean?
China already has the largest military in the world (2.5 million strong), spends potentially 20% of the U.S.' budget, spends more outside budget for weapons systems acquisitions and, here's the fun part, while the U.S. divides this budget defending the globe with standing forces in Europe,
et alia, all of China's military budget is directed and kept within China to use for it purposes in Asia, where the American military presence is limited. So, can China achieve parity with the U.S. given its understated budget, off-budget spending and double digit annual military spending growth? You better believe it.
Some links for you not to read.
http://www.globalsecurity.org/military/world/china/budget.htm
And from a lefty source, if that's what you need to believe.
http://news.bbc.co.uk/1/hi/world/asia-pacific/4773358.stm
Intelligent comments or or useful information to add are welcome.