Zhao said U.S. military equipment is far more advanced than China's. The U.S. has 12 aircraft carriers, eight amphibious assault ships and a vast range of nuclear missiles and space weapons.

"The increase in military expenditure will be used to raise the salaries of soldiers and officers. Also as China develops economically, it needs to increase its defense expenditure out of security concerns," said General Zhao.

China attaches great importance to the Sino-U.S. ties. China is the biggest developing country and the United States is the biggest developed country, General Zhao said. "We have common interests on many issues, including the economy, trade, fighting terrorism and the Korean Peninsula issue," he added.

"This means that ties between the two countries will move forward despite unpredictable twists and turns, because cooperation benefits both sides and confrontation hurts both," said General Zhao.