China is massively increasing its military spending, and it seems to be worrying many of its neighbours.
Adrian Brown reports on the new arms race in the region, which has seen Asia become a growing market for the weapons industry.
On the surface, there’s much diplomatic politeness, but Adrian finds arms trade fairs bustling with Asian delegates, and new military pacts being forged between countries.
One of the main causes of concern is the South China Sea, which is thought to be rich in oil and gas. The area is currently disputed between six countries, including China.
It’s not war, but it’s not peace either, and the world will be watching what happens next.
WATCH - Click to see Adrian's report.
Photo (Chinese military parade): AAP
On air: 22nd May 2012