Asia defense spending: New arms race in South China Sea

The Philippines, Vietnam, Indonesia, Malaysia, Thailand and Taiwan are beefing up their military in the face of increasingly bold incursions in the region by China. But most of that spending is not going to weapons makers in the United States.

An Indonesian naval vessel.

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An Indonesian naval vessel.

China has over recent years declared increasing levels of sovereignty over the South China Sea, even parts of it that are far from the Chinese mainland. Largely as a result, other nations in the region have allocated more money for weapons and are expected to spend even more: IHS Janes sees virtually every nation in the region boosting expenditures—Indonesian procurement spending is expected to spike by 61 percent by 2021, for instance, and the Philippines is seen doubling spending in that time frame. (Tweet This)

But so far, most of those procurement dollars aren’t going to the United States. Between 2012 and 2013, the value of U.S. military sales agreements with all but one of those nations declined, according to a U.S. Department of Defense report. Gregory Polling, fellow with the Sumitro Chair for Southeast Asia Studies for the Center for Strategic and International Studies, said that although that decrease may not be reflective of total expenditures, the claimant nations are weighing their options when it comes to whom they buy from.

Read more: http://www.cnbc.com/id/102698589