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Source: US Dept of Defense

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Chapter One: Key Developments

“The world today is undergoing extensive and profound changes, and China today is undergoing extensive and profound transformations.” – President Hu Jintao

Several significant developments in China over the past year relate to the questions Congress posed in Section 1202 of the National Defense Authorization Act for Fiscal Year 2000 (P.L. 106-65).

Developments in China’s Grand Strategy, Security Strategy, and Military Strategy

Developments in China’s Military Forces

China’s long-term, comprehensive transformation of its military forces is improving its capacity for force projection and anti-access/area denial. Consistent with a near-term focus on preparing for Taiwan Strait contingencies, China deploys many of its most advanced systems to the military regions opposite Taiwan.

China describes operating under “informatized” conditions and improving “integrated joint operations” capabilities as the primary objectives for the PLA’s build-up. Informatized conditions are operating environments characterized by communications jamming, electronic surveillance, and precision weaponry. “Integrated joint operations” is the PLA’s term for multi-service, combined arms operations.

Ballistic and Cruise Missiles. China has the most active ballistic missile program in the world. It is developing and testing offensive missiles, forming additional missile units, qualitatively upgrading certain missile systems, and developing methods to counter ballistic missile defenses.

Space and Counterspace. China is developing a multi-dimensional program to limit or prevent the use of space-based assets by its potential adversaries during times of crisis or conflict. Although China’s commercial space program certainly has utility for non-military research, it demonstrates space launch and control capabilities that have direct military application.

Cyberwarfare Capabilities. In the past year, numerous computer networks around the world, including those owned by the U.S. Government, were subject to intrusions that appear to have originated within the PRC. These intrusions require many of the skills and capabilities that would also be required for computer network attack. Although it is unclear if these intrusions were conducted by, or with the endorsement of, the PLA or other elements of the PRC government, developing capabilities for cyberwarfare is consistent with authoritative PLA writings on this subject.

Naval Power. China’s naval forces include 74 principal combatants, 57 attack submarines, 55 medium and heavy amphibious ships, and 49 coastal missile patrol craft.

Air and Air Defense. China bases 490 combat aircraft within un-refueled operational range of Taiwan, and has the airfield capacity to expand that number by hundreds. Many of these aircraft are upgrades of older models; however, newer, and more advanced, aircraft make up a growing percentage of the inventory.

Ground Forces. The PLA has about 1.25 million ground forces personnel, with approximately 400,000 based in the three MRs opposite Taiwan. China is upgrading these units with modern tanks, armored personnel carriers, and artillery. Among the new capabilities acquired by PLA ground forces are the approximately 200 Type 98 and Type 99 main battle tanks now deployed to units in the Beijing and Shenyang MRs.

Developments in PLA Military Doctrine

International Military Exchanges, Exercises, and Interaction

Efforts to Acquire Advanced Technologies to Enhance China’s Military Capabilities

Taiwan’s Defense Capabilities and Cross-Strait Stability

There were no armed incidents in the vicinity of the Taiwan Strait in 2007 and the overall situation remains stable, as it did in 2006. However, China’s military build-up and the deployment of advanced capabilities opposite the island have not eased.

For its part, Taiwan recently reversed the trend of the past several years of declining defense expenditures; it is also modernizing select capabilities and improving its overall contingency training. But the balance of forces continues to shift in the mainland’s favor.