Founded in 1927, the People’s Liberation Army of China has more than 2.3 million active service members in its military making it the largest active force in the world. With a reserve of 800,00 and a paramilitary of 1.5 million, in all, China has more than 4.5 million military members. China’s defense budget of $129 billion is continually increasing each year by an average of 12 to 15%. This total makes it the second largest defense budget in the world – second only to the United States. China is believed to house as many as 240 nuclear warheads.