China: May 7, 2003

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SARS is apparently going to have severe military repercussions in China. The economy is taking a major hit from the slowdown and panic caused by the spread of the disease. This will mean less income for the government, along with greater expenses (health care for SARS victims.) That will cause cutbacks in military spending, because that's the one area the government can afford to cut without causing any social unrest. The communist governments main goal is to stay in power, not build up the military. 

 

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