So that's where some of our interest payments are going. It's nice to know someone is profiting by our out-of-control borrowing.

It is actually wonderful to see places like China contribute more significantly to the growth of biomedical research, because ultimately we will all benefit in terms of improved diagnostics and therapeutics as well as new knowledge. China is working very hard to increase its scientific prowess. It will probably emerge as a world leading scientific powerhouse in relatively short order. Like the Russian advancements in space technology in the late 50's and 60's spawned a race that ultimately improved education and technological development in the West, the rise of the Far East might further encourage North America and Europe to further increase their own commitments to biomedical research. The free flow of ideas and knowledge between interacting international scientists has probably been one of the major drivers of economic development and human welfare in the last century. With genuine concerns about the human condition and the environment that transcend nationalism, scientists have played a major role in improving human health and prosperity and flagging practices that are harmful. In the end, most people regardless of the country in which they reside will benefit.

The US manufacturers of military equipment and mercenary companies like Blackwater are the ones that are really profiting here. The US spent $700B last year on military while China spent about $150-200B. For comparison the 2011 NIH budget was $30B. Diversion of just 1% of the US military budget to R&D would result in a 25% increase in funding.

US federal investment is $140B for 2012.
The real question is how much will we do with $140B vs how much will China do with $36B?