Both. Both are necessary.The money was better spent improving the economy and R&D rather than expanding the nuclear arsenal. Especially before the CIA ring got dismantled.
While the need and importance to improve the economy and quality of life of Chinese citizens + intensifying R&D efforts in various fuelds are set in stone, having a mere 350 nukes is woefully insufficient against the warmongering hawks leeching on Capitol Hill that are bristling with (at least) 1500+ nukes aimed squarely at China right now.
At present, China's military capability is pretty sufficient to deter smaller nations from trying to provoke trouble against China, but only at that.
Therefore, in order to deter the US and NATO+ from provoking conflict/war with China as best as possible, a massively powerful conventional military + a formidable nuclear arsenal is necessary. It's like Yin and Yang complementing one another.
I'm not calling for a blind expansion of China's nuclear arsenal that mirrors the fever of the First Cold War, but having an equivalent cumulative (readily and actively deployed) strategic arsenal scale (in megaton) to the US has become a necessity instead of a luxury by this point, I'm afraid.
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