The Chinese economy is unique, with a population of over 1.3 billion people and capital city of Beijing. The yuan currency fluctuates against other currencies, and inflation has slowed to its lowest point since 2010 at 3.2% despite a target of 4% for 2012. China also has the second largest military budget in the world, which will rise 11.2% in 2012, though still far behind the United States' defense spending of $739.3 billion.