Google says the Chinese military budget is 281 billion. They probably get lower cost labor and production, but that’s significantly lower than the United States.
Adjusting for Purchasing Parity, an imperfect measure, that still only like 600 billion, significantly lower than the United States.
Vertical integration is an interesting claim, because we have been told that the government outsourcing to private companies is more efficient due to competition than the government doing the work themselves.
It depends on the vertical. If you're outsourcing a sixth-generation fighter jet or an aircraft carrier, your options are fewer than if you're outsourcing building construction or office supplies. You don't want to trust your nuclear-powered supercarrier to Joe's Boat Emporium.
Adjusting for Purchasing Parity, an imperfect measure, that still only like 600 billion, significantly lower than the United States.