For the past decade, Chinese military strategists have keenly observed the changes in U.S. national strategy and military transformation. This report examines the constraints, facilitators, and potential options for Chinese responses to U.S. transformation efforts and offers possible U.S. counterresponses (particularly in light of whether Taiwan moves toward or away from formal independence).

Chinese strategists have avidly consumed U.S. Department of Defense (DoD) writings over the past 10 years and have keenly observed changes in U.S. national strategy and military transformation. Commentary by People's Liberation Army (PLA) experts on Operation Iraqi Freedom suggest that Beijing believes the Pentagon's efforts at achieving a Revolution in Military Affairs are not just succeeding, but accelerating. Yet the concomitant acceleration of the pace of Chinese military modernization also suggests that the Chinese are not dissuaded by U.S. military motivations to continue their efforts apace. This report examines the constraints, facilitators, and potential options for Chinese responses to U.S. transformation efforts and offers possible U.S. counterresponses.

A RAND study analyzed Chinese and U.S. military capabilities in two scenarios (Taiwan and the Spratly Islands) from 1996 to 2017, finding that trends in most, but not all, areas run strongly against the United States. While U.S. aggregate power remains greater than China’s, distance and geography affect outcomes. China is capable of challenging U.S. military dominance on its immediate periphery—and its reach is likely to grow in the years ahead.

China’s emergence as a global economic superpower, and as a major regional military power in Asia and the Pacific, has had a major impact on its relations with the United States and its neighbors. China was the driving factor in the new strategy the United States announced in 2012 that called for a “rebalance” of U.S. forces to the Asia-Pacific region. At the same time, China’s actions on its borders, in the East China Sea, and in the South China Sea have shown that it is steadily expanding its geopolitical role in the Pacific and having a steadily increasing impact on the strategy and military developments in other Asian powers.

Through extensive primary source analysis and independent analysis, this report seeks to answer a number of important questions regarding the state of China’s armed forces. The authors found that the PLA is keenly aware of its many weaknesses and is vigorously striving to correct them. Although it is only natural to focus on the PLA’s growing capabilities, understanding the PLA’s weaknesses—and its self-assessments—is no less important.

China's People's Liberation Army (PLA) has embarked on its most wide-ranging and ambitious restructuring since 1949, including major changes to most of its key organizations. The restructuring reflects the desire to strengthen PLA joint operation capabilities- on land, sea, in the air, and in the space and cyber domains. The reforms could result in a more adept joint warfighting force, though the PLA will continue to face a number of key hurdles to effective joint operations, Several potential actions would indicate that the PLA is overcoming obstacles to a stronger joint operations capability. The reforms are also intended to increase Chairman Xi Jinping's control over the PLA and to reinvigorate Chinese Communist Party (CCP) organs within the military. Xi Jinping's ability to push through reforms indicates that he has more authority over the PLA than his recent predecessors. The restructuring could create new opportunities for U.S.-China military contacts.