FACTBOX: NO REPORTER NARRATION<br/> <br />The U.S. spends around $700 billion on defense and international security annually.<br/> <br />That's more than the world's next 20 biggest military spenders combined.<br/> <br />China has just set an official defense budget of $120 billion for 2013, up 11% from last year.<br/> <br />But the country's actual defense spending may be much higher.<br/> <br />Western research groups expect China to more than double its military spending by 2015.<br/> <br />That's while U.S. military spending is declining.<br/> <br />America's top defense budget priorities:<br/> <br />- Replace old aircraft carriers<br/> <br />- Build new drones<br/> <br />- Develop space-based surveillance system<br/> <br />China is said to be ramping up spending on maritime defense, including aircraft carriers, submarines and anti-ship missiles.<br/> <br />The US Navy's next-generation CVN-78 aircraft carrier will cost over $12 billion.<br/> <br />China's Liaoning aircraft carrier is an upgraded Ukrainian ship - bought for just $25 million.
