'China new US bogeyman after al-Qaeda, pretext to sell more arms'. (VIDEO)

Top US arms makers are forecasting a significant rise in sales for the coming year - after a pretty solid 2012. Washington has been shifting its sights towards Asia - looking to arm its allies neighboring North Korea and China.

Independent journalist James Corbett says the US is creating a pretext to make billions from arms sales - which could backfire through geopolitical tensions.