PRC's spending is unacceptable.So let me get this straight, you are arguing two things.
1) That the PRC's current defense spending is appropriate given the extremely elevated threat environment it is in.
2) That inflation, particularly wage inflation, will consume most or even all of the extra defense spending the US and Japan are piling on.
Is this correct? If so, can you explain why?
Inflation however will consume most of American defense budget increase, on top of stupidly expensive Ukraine adventure. The amount spent affecting China might as well be going down. It already manifest in Taiwan arms sale delayed and going into Ukraine. Japan's large budget increase will be a positive effect, but it serves mostly to compensate lesser American involvement. Ultimately Japanese is miniscule next to US China struggle.