China's limited transparency concerning its defence spending harms strategic trust, but foreign analysts often lose sight of important realities. Specific details remain unclear, but China's defence spending overall is no mysteryit supports PLA modernization and personnel development as well as its announced objectives of securing China's homeland and asserting control over contested territorial and maritime claims, with a focus on the Near Seas (the Yellow, East, and South China seas). This article offers greater context and perspective for Chinese and Western discussions of China's rise and concomitant military build-up through a nuanced and comprehensive assessment of its defence spending and military transparency.Whatever the exact size of the People's Republic of China's (PRC) actual defence spending, it is now the world's second largest. Its rapid increase over the past two decades is a development of considerable significance to the world, yet it remains poorly understood. Many analysts have a tendency to focus on the most unsettling aspects of both China's military strategic and budgetary opacity while overlooking the context in which relevant policy choices are made. The result is often an over-simplistic narrative about China's rise and long-term strategic intentions. A salient example of the problematic, decontextualized discourse about China's defence spending is then-US secretary of defence Donald Rumsfeld's charge at the June 2005 Shangri-La Dialogue: "Since no nation threatens China, one