Chapter One: Key Developments 1
Chapter Two: Understanding China’s Strategy 7
China’s Uncertain Future 7
Strategy with Chinese Characteristics 9
Military Modernization . . . Beyond Taiwan 10
Chapter Three: China’s Military Strategy and Doctrine 13
Deception in Chinese Military Strategy 14
The Strategic Direction of PLA Modernization 14
Chapter Four: Resources for Force Modernization 18
Seeking Sustainable Growth 18
Military Budget Trends 19
Determining Actual Military Expenditures 20
Foreign Weapons and Technology Acquisition 21
Military Industries and the Science and Technology Base 22
Lifting the European Union Arms Embargo 22
Chapter Five: Force Modernization Goals and Trends 24
Emerging Area Denial Capability 25
Strengthened Nuclear Deterrence 26
Building Capacity for Precision Strike 27
Improving Expeditionary Operations 29
Expanding Air Defense 30
Extended Range Maritime Presence 31
Space and Counterspace Developments 31
Exploiting Information Warfare 35
Chapter Six: PRC Force Modernization and Security in the Taiwan Strait 37
China’s Strategy in the Taiwan Strait 37
Beijing’s Options for Action against Taiwan 38
Persuasion and Coercion 38
Limited Force Options 39
Air and Missile Campaign 39
Blockade 39
Amphibious Invasion 40