China is expected to reveal its 2012 military budget this weekend, which U.S. military experts said could exceed the estimated $US160 billion that the world's second biggest economy spent in 2010 for upgrading its military might.

According to Reuters, Chinese authorities were known to issue China's military fiscal plans prior to the initial session of the Asian giant's Parliament, which is scheduled to commence official functions on March 5.

China has been locked in a silent posturing against the United States, especially in the Asia-Pacific region, where analysts have forecasted the likely location of the conflict between the two powers.

The region has been identified as the next economic powerhouse and supposed energy sources lying beneath the South China Sea, analysts said, could potentially serve as reasons for both the U.S. and China to flex their muscles, pushing smaller nations in the area into raising serious concerns, both economic and political.

America has established its presence in the region in the immediate aftermath of the Second World War and U.S. President Barack Obama has announced last year that intends to further fortify America's reach and influence in the strategic area.

Also last year, Obama secured a pact with Australia that would allow U.S Marines to be stationed in the northwest part of the country, with deployments to start over the next three years.

On its part, China has launched a refurbished aircraft carrier last year, which analysts read as a sign that the country signals its intention to match U.S. agenda in the region.

Chinese Vice President Xi Jinping, touted as the next top man in China, however, stressed that he is inclined to minimise whatever existing tensions now being played out between the U.S. and China.

Yet China's official declarations were somewhat blurred by the developments seen on its military program, with the U.S. accusing that the country's ongoing naval modernisation belied its outward claims.

Beijing has admitted that it is beefing up its naval fleet, with construction of new warships and submarines, which were reportedly equipped with anti-ballistic missiles, now underway.

China's military budget on the surface will definitely offer but a glimpse of the country's actual defence spending, according to Rory Medcalf of the Lowy Institute for International Policy in Sydney.

"The official numbers don't tell us a lot other than the fact that China's defence budget is increasing year on year," Medcalf told Reuters.

Pentagon has maintained that judging from its recent moves, China will surpass the $US95.6 billion it announced last year as representing its military budget, hinting too that any upward revision on the budget this week will still fall short of the actual figures allocated for China to achieve its military goals.