Contents
Executive Summary 3
1. ANNUAL UPDATE 7
DEVELOPMENTS IN CHINA'S BILATERAL OR MULTILATERAL RELATIONSHIPS 8
THE SECURITY SITUATION IN THE TAIWAN STRAIT 13
CURRENT CAPABILITIES OF THE PEOPLE'S LIBERATION ARMY 13
DEVELOPMENTS IN CHINESE MILITARY DOCTRINE AND TRAINING 19
ADVANCED TECHNOLOGY ACQUISITION 20
2. UNDERSTANDING CHINA'S STRATEGY 21
NATIONAL LEVEL PRIORITIES AND GOALS 22
FACTORS SHAPING CHINA'S LEADERSHIP PERCEPTIONS 24
INTERNAL DEBATE OVER CHINA'S REGIONAL AND GLOBAL ROLE 27
3. FORCE MODERNIZATION GOALS AND TRENDS 33
PLA CAPABILITIES IN DEVELOPMENT 35
4. RESOURCES FOR FORCE MODERNIZATION 49
OVERVIEW 50
MILITARY EXPENDITURES TRENDS 50
DEVELOPMENTS AND TRENDS IN CHINA'S DEFENSE INDUSTRY 51
MILITARY EQUIPMENT MODERNIZATION TRENDS 52
5. FORCE MODERNIZATION FOR A TAIWAN CONTINGENCY 59
OVERVIEW 60
CHINA'S STRATEGY IN THE TAIWAN STRAIT 60
CHINA'S COURSES OF ACTION AGAINST TAIWAN 61
THE PLA'S CURRENT POSTURE FOR A TAIWAN CONFLICT 62
TAIWAN'S DEFENSIVE CAPABILITIES 63
6. U.S.-CHINA MILITARY-TO-MILITARY CONTACTS 65
STRATEGY FOR ENGAGEMENT 66
MILITARY-TO-MILITARY ENGAGEMENT IN 2013 - HIGHLIGHTS 67
PLANNING FOR MILITARY-TO-MILITARY ENGAGEMENTS IN 2014 70
SPECIAL TOPIC: RECONNAISSANCE SATELLITES 71
SPECIAL TOPIC: CHINA'S USE OF LOW-OBSERVABLE TECHNOLOGY 72
SPECIAL TOPIC: CHINA'S FIRST AIRCRAFT CARRIER 74
SPECIAL TOPIC: INTEGRATED AIR DEFENSES 75
APPENDIX Ⅰ. MILITARY-TO-MILITARY EXCHANGES 77
APPENDIX Ⅱ. CHINA AND TAIWAN FORCES DATA 82
APPENDIX Ⅲ. ADDITIONAL MAPS AND CHARTS 89
Figure 1. China's Sovereignty Claims. 89
Figure 2. China's Import Transit Routes. 90
Figure 3. Conventional Strike Capabilities. 91
Figure 4. Medium and Intercontinental Range Ballistic Missiles. 92
Figure 5. Taiwan Strait SAM and SRBM Coverage. 93