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 monitor the cost-effectiveness of applied funds, conduct whole-process audit, and combine civil and military efforts in auditing. Since 2012, they have carried out audits over 39,000 units and 13,000 PLA and PAP officers in positions of leadership at and above regiment level. As a result, notable achievements have been made in the fight against corruption in China's armed forces, and a healthy political atmosphere of integrity has formed.

Modernizing national defense mobilization. China has refined the system of national defense mobilization to enhance the development of its defense reserves. China is streamlining the number of primary militia nationwide, driving deeper reform of militia and reserve forces in their size, structure and composition, promoting integrated development and employment of the reserve and active forces, and extending the function of national defense mobilization from mainly supporting the land force to supporting all branches at a faster pace.

In the process of deepening the reform of the CPC and governmental institutions, the Ministry of Veterans Affairs of the PRC has been set up. Through a series of preferential measures, the veteran support system is progressing at provincial, prefectural, county, town and township (sub-district), and village (community) levels. Substantial steps have been taken to enhance the government's efforts to support the military and their families, and to strengthen the military's support to the government and the people. China's armed forces play an active role in poverty alleviation. The relationships between the military and the government and between the military and the people are getting even closer. There is a growing consensus across communities to respect and give preferential treatment to all service members.

V. Reasonable and Appropriate Defense Expenditure

China attends to both development and security. It is making an integrated effort to build a prosperous country and a strong military, and striving for the coordinated development of national defense and the economy. Following the principle of building the armed forces through diligence and thrift, China takes into consideration the development of the economy and the demands of national defense, decides on the appropriate scale and composition of defense expenditure, and manages and applies these funds in accordance with law.

Since reform and opening-up, China has increased its defense expenditure from a level of sustainability to moderate growth. On the whole, defense expenditure has