China arms spending soars, EU cuts back Figures released Tuesday by Stockholm International Peace Research Institute indicate U.S. military spending dwarfs that of European Union countries. The United States has underestimated the growth of China's military as American policymakers have taken official statements at face value or failed to understand Beijing's thinking, according to a recent study by a security commission. STOCKHOLM, Sweden, April 17 (UPI) -- Figures released Tuesday by Stockholm International Peace Research Institute indicate U.S. military spending dwarfs that of European Union countries. Last year, the United States spent $711 billion on armed forces. In the same year, the EU as a whole, along with China and Russia, spent a combined $496 billion. The figures have shown a steady decline in EU military spending since 2008. By contrast, U.S. military spending has steadily climbed in the last four years, EUobserver reported. Across the EU, spending dropped, most notably in hard-hit Greece where it sank from $10.1 billion in 2008 to $7.5 billion today. The only countries where spending has remained somewhat consistent are Ireland and Portugal, both of which were bailed out by the EU and the International Monetary Fund. Spending dropped dramatically in Italy and Spain, countries which may soon require similar bailouts. China, however, has increased its spending drastically, from a mere $17 billion in 2008 to a soaring $129 billion in 2011. Russia's spending has also seen a boost, from $57 billion to $63 billion.