According to articles I read a few months back, China is also raising their levels of military (especially naval) spending.

Russia is actually downsizing and reorganizing it's armed forces following the American model of a smaller, more highly trained and better equipped force. Which, frankly, was needed. The lack of professionalism, corruption and brutality (towards its own troops) of the Russian army is well known. Russia also prepares to build its first operational aircraft carrier as well as additions to its submarine fleet.

Both nations are gearing up to project some power, at least regionally.

"It Can't Be Just About Us"
--Frank Schnittger, ETian Extraordinaire