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Yeah, I really don't see the Chinese army being more than a couple million. 160 million would be a very large percentage of their entire population, and no country can financially support an armed force of that scale.
Yep, I think he's mistaken. The article on Wikipedia (sources seem reliable and to confirm) show the following numbers:
Active: 2,285,000
Reserve: 800,000
Paramilitary: 1,500,000
Total: 4,585,000
My 'standing army' was the "Active" numbers only, as Reserve and Paramilitary aren't considered Standing Army.