Final answer:
The United States holds the title of the world's largest and most expensive military, not China. While China is expanding and modernizing its military presence, particularly in the South China Sea, it still trails behind the U.S. military expenditures and capabilities.
Step-by-step explanation:
While China has the second-largest economy in the world and has been modernizing its military, it is not currently the country with the world's largest and most expensive military. That distinction goes to the United States. As of the data available, the United States has an annual defense budget of around $1.3 trillion, formal or informal agreements to defend 37 countries, and over 700 military installations abroad in approximately 130 countries. In contrast, China's military expenditures are considerable but not the largest. However, China is increasing its military capacity and presence, notably in regions such as the South China Sea, signaling its intentions to be a major strategic power.
There are various factors at play in assessing military strength and expenditures, including economic power. China's growth might face challenges due to domestic issues such as income inequality and pollution, which could impact its ability to sustain its current trajectory in defense spending. It's also important to note that in terms of GDP per capita, China's population is still relatively poor compared to developed nations, which could influence its economic and military capabilities in the future.