No it's not[1]. As a % of the total budget it's around 16%, which is huge. And furthermore the appropriations for the wars in Iraq and Afghanistan are mostly not included - they have been funded by "supplemental" spending bills, which total well into the 10 figures.
The Philippines doesn't really have a navy worth talking about. Japan can defend itself but that's a different (also kinda dicey) sea - they could only really go on offence in cooperation with the USA. China's main military threats are on land and come from its western borders - Myanmar, Laos, Vietnam, and of course India. With the possible exception of India I don't see any of them picking a fight anytime soon.
[1] https://www.usgovernmentspending.com/spending_chart_1792_201...
If all but one of those (i.e., Russia) are "friendly" (i.e., most would say China v US is unlikely given the shared financial interests), who / what exactly is the USA so heavily armed for? Is military force as a proxy for diplomacy wise?
So regardless, of the percentage of X or Y it's pretty clear these weapons are an enabler. Yet infrastructure is crumbling? Schools not as competitive? Etc.
also note that Chinese design/build/operate advanced weapons like anti satellite missiles, anti aircraft carrier ballistic missiles, ballistic missile launch early warning systems, J-20 stealth fighters, military grade satellite navigation system on its own, india can not even build self-propelled artillery on its own.
Both nations know this full well, that is why there will be long lasting peace in the region/border.
But I do agree that neither will risk a major confrontation.
[1] https://en.wikipedia.org/wiki/2017_China%E2%80%93India_borde...
This is a topic I've discussed quite extensively with my Chinese friends and my impression is that while Taiwan remains a sore point, that ship has sailed for the time being. The fact that it's independent and not a colony helps - Hong Kong was a different story. And there's no pressing national security need for the territory like Tibet.
The feeling towards Taiwan (amongst my circle anyway) is a bit like a wayward child - to be held in check, and encouraged to return, but certainly not warranting military action with its accompanying loss of life. And the politburo's main goals are stability and its own continued reign. So long as Taiwan doesn't do anything to threaten those, China may rattle its sabre every once in a while, but it's probably safe for now.
My personal prediction for Taiwan (as a white layperson, mind) is that as the mainland prospers and stabilises, and gets over its remnant paranoia from the bad old days - and as the island gets over its own adolescence - the emnity and restrictions will gradually dissipate and the countries will move closer together naturally. It might not be a Chinese territory again like HK, but it's hard to imagine too many restrictions being in place in 50 or even 30 years' time. In the end, Taiwan needs China a lot more than the other way round, and will inevitably gravitate towards it.
That's assuming China doesn't collapse spectacularly, of course. Then all bets are off!
And you're underestimating the extent to which China is making enemies in the South China Sea region. These are countries with potentially significant military capability, too, like the Philippines and Japan, not bands of goat herders.