Chinese 防禦(defence) budget has increased,NATO Allies declined...

Speech by NATO Secretary General Anders Fogh Rasmussen at the Japan National Press Club, Tokyo, Japan (followed by Q&A session)

Q: My name is Muzi (sp?) Yomiuri Shimbun, staff writer in Tokyo. I'd like to ask you about China; because you did not refer to China at all on your speech. "Yes, has the military build-up of China become a threat to the security of Asian region and to the world?" is my question. And what is your perception about the situation?
And secondly, what can NATO do to stabilize the situation in Asia? And according to your perception, has your perception changed after you visited Asia? Thank you.
ANDERS FOGH RASMUSSEN: Thank you very much for your questions. First on China, we do not consider China a direct threat to NATO Allies.
Of course, we have taken note of the fact that the Chinese defence budget has increased substantially during recent years while defence budgets in NATO Allied nations have declined. These declining defence budgets in NATO nations are, of course, a matter of concern, seen from my chair as NATO Secretary General. And from an overall strategic perspective, of course, it may have a long-term impact on the global power balance that we are cutting defence budgets while China and other emerging powers are increasing their defence budgets.
But again, we do not consider China a direct threat to NATO Allies. We hope that China will use its increasing influence on the international scene in a peaceful way and in a constructive way to maintain international peace, security and stability.
I hope and I believe that the Chinese leadership realizes that it is in China's interest to maintain such international peace, security and stability; because the Chinese economic success depends very much on a stable world order.
Let me just add to that, that I would very much like to see a strengthened dialogue between NATO and China. NATO operates on the basis of United Nations mandates. And we have special relationships with four out of the five permanent members of the United Nations Security Council. Because three of them are Allies: the US, UK and France. And with the fourth, Russia, we have a special partnership rooted in the NATO-Russia Council. So we have a structured dialogue with four out of five permanent members of the UN Security Council. But with the fifth, China, I would like to see a more structured dialogue. We have some dialogue. But it could be enhanced. And that could, I think, also contribute to preventing any misunderstandings.
(...)
On China, which kind of dialogue? Well, what I mentioned was my desire to see a more structured China-NATO dialogue. But obviously it would also be to the benefit of the security in Asia if a multilateral dialogue could take place among major players in this region. And that leads me to... to your third question.

Anders Fogh Rasmussen

http://www.nato.int/cps/en/natolive/opinions_99634.htm