China is building its military capability at a rapid pace but it remains a "regional power with regional concerns", the think tank IISS said in its annual report on the world's armies Tuesday.
The respected International Institute for Strategic Studies said that despite the effects of the global financial crisis, the 7.5 percent growth in the Chinese defence budget in 2010 was greater than most countries.
Such growth "continued to provoke concern", the London-based group said in its "Military Balance 2011" study.
