The navy race was between Britain and Germany, Germany wanted a bigger navy.  Britain did not want them to have a bigger navy due to the fact Britain ruled the sea for 95 years, had a large amount of water surrounding they're country and Britain had a bigger empire.  Britain was weary of possible attack via sea from the Germans at the British Empire, British thought it was unnecessary for a bigger navy for Germans because they had a littler empire and had less sea surroundings.  Germany did not see why British where concerned, Britain made the HMS Dreadnought, the first new class war ships, Germany reacted by making their own 'Dreadnought'. They spent millions on their new war ships.

HMS Dreadnought is shown on the right hand column, at the top.