The Cold War is over, but international violence, and preparations for it, are not. Despite the end of the bipolar world and “balance of terror” associated with the United States-Soviet confrontation, peace has not broken out. The militarization of world politics continues, as shown by the Gulf War, ethnic and religious conflicts in central Europe and Asia and nuclear proliferation. Global military spending has somewhat diminished, but at somewhere between $900 billion and $1 trillion annually, it still is a major factor in the budgets and ambitions of most countries. Nevertheless, the end of the Cold War provides opportunities for governments to re-examine their priorities and shift military resources to promote economic and social development, the so-called “peace dividend.” Although in recent years China has dramatically increased its official military expenditures (nearly 100 per cent between 1988 and 1993), beginning in 1979 the Chinese leadership inaugurated a major reorientation of its military-industrial complex.