The paper gave review on domestic and foreign research literature, methods, and conclusions about the coordination between defense spending and economic development. Balancing well the need to build a strong defense with economic development in the process of Chinese modernizing construction, the paper proposed an evaluation index system, as well as an assessment model. The paper also presented some empirical research by applying the related statistic data for the years 1997-2007, and drew a conclusion of the relationship of coordinated development