Offi Ce of the Secretary of Defense

Annual Report to Congress: Military Power of the People's Republic of China 2007 Offi Ce of the Secretary of Defense

China?s rapid rise as a regional political and economic power with global aspirations is an important element of today?s strategic environment ? one that has significant implications for the region and the world. The United States welcomes the rise of a peaceful and prosperous China, and it encourages China to participate as a responsible international stakeholder by taking on a greater share of responsibility for the health and success of the global system. However, much uncertainty surrounds the future course China?s leaders will set for their country, including in the area of China?s expanding military power and how that power might be used. The People?s Liberation Army (PLA) is pursuing comprehensive transformation from a mass army designed for protracted wars of attrition on its territory to one capable of fighting and winning short-duration, high intensity conflicts against high-tech adversaries which China refers to as ?local wars under conditions of informatization.? China?s ability to sustain military power at a distance, at present, remains limited but, as noted in the 2006 Quadrennial Defense Review Report, it ?has the greatest potential to compete militarily with the United States and field disruptive military technologies that could over time offset traditional U. S. military advantages.? China?s near-term focus on preparing for military contingencies in the Taiwan Strait, including the possibility of U. S. intervention, appears to be an important driver of its modernization plans. However, analysis of China?s military acquisitions and strategic thinking suggests Beijing is also generating capabilities for other regional contingencies, such as conflict over resources or territory.