You appear to be basing your argument on a western bias that military funding will be reduced to increase social expenditure, which is exactly what a western govt would do to ensure it's continued time in govt through the ballot box and reduce potential for civil discontent which would also be expressed through the ballot box and on various media.China does face a demographic problem that will certainly hit home around the 2030s to the 2040s. I am not sure how this will affect the rest of the region. It could have the effect of starving the military of funds as their work base shrinks and the cost of dealing with an ageing population sucks up the rest of their funding. In that case the Chinese military threat might just go away of its own accord.
However, in the PRC the PLA, PLAN, PLAAF, Rocket Forces, Peoples Armed Police, MSS, the various Peoples Militias, and other security organs do not belong to the State, but to the CCP. Therefore the Politburo of the CCP will prioritise funding and resources to that which will ensure their survival and the continual absolute control of the CCP over China above all else. That's how it has been since 1949 and is always their first priority.
My point is that you cannot assume something this serious through a western lense. You have to look at it through a Chinese CCP lense.