Who cares about all that weapon stuff anyway. xD
Instead of pumping so much money into something like that, people should rather care about the relations between the states. And maybe use the money for something which helps everyone. :P
But it's right that China is developing very fast. However, it'll take a while for them to be able to keep up with the U.S. They might be rather good developed in the cities like Hong Kong and Peking but country sides, the situation is completely different. Many people are poor there. They first have to resolve their problems, before they can really think of updating their weapon technologies. At least that's what I think they should do. And I guess it will seriously hinder them if they won't do that.