Report: China's internal security spending hampers growth

China spent US$76.7 billion on domestic security in 2009, just below its military budget of US$79.4 billion, according to a study by researchers at Tsinghua University, Reuters reported. The report said that "[t]hreats to social stability are constantly being side-stepped and postponed, but that is making social breakdown increasingly grave. The current model of stability has reached the point where it cannot continue." Some analysts say the surge in domestic security spending has drawn funding away from sectors that need it most, and is inhibiting growth. Previous studies suggest that the rate of spending on domestic security may be increasing faster than funding for schools, hospitals and welfare. "The unyielding stability has already reached the point where it cannot be sustained, because it exacts a huge cost," said Yu Jianrong of the Chinese Academy of Social Sciences.