So, Communist China is more efficient and less corrupt than the U.S by a large margin? I had no idea they were so much better than us!
While China will continue to enjoy a significant manpower cost savings over us, it's not the 100x you imply. And, as they continue to modernize, that cost savings will be eroded.
China has a massive number of troops, but their hardware doesn't even begin to compare (not even their new jets).
The U.S. is the #1 arms dealer in the world, far outpacing China.
"Overseas weapons sales by the United States totaled $66.3 billion last year, or more than three-quarters of the global arms market, valued at $85.3 billion in 2011. Russia was a distant second, with $4.8 billion in deals"
Even when you factor in likely profit margin, the U.S. comes out ahead. Cheap, mass produced items like the AK-47 have a lot lower profit margin than the advanced weaponry the U.S. sells.