According to a Pentagon report, China’s military modernization program is backed by intelligence acquired through industrial and economic espionage, Reuters reports.
In this year’s annual report about the Chinese military that spanned 83 pages, the Pentagon found that the country is developing a stealth aircraft carrier “to project power further offshore.”
The report added that China uses state-sponsored “economic espionage, theft of trade secrets, export control violations and technology transfer.” for its military procurement and modernization efforts.
Deputy assistant secretary of defense for East Asia David Helvey said the military modernization program lacks “openness and transparency that others are certainly asking of China.”
The Pentagon added that China has used sensitive technology information from a network of government-affiliated companies and research firms.
The report said that China’s military spending increased by 10.7% to $114 billion in March.
The Pentagon also noted the actual military spending of the country in 2012 was $135 billion instead of the publicly announced $106 billion.