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ANNUALREPORTTOCONGRESSMilitaryandSecurityDevelopmentsInvolvingthePeople’sRepublicofChina2010OfficeoftheSecretaryofDefenseMilitaryandSecurityDevelopmentsInvolvingthePeople’sRepublicofChina2010AReporttoCongressPursuanttotheNationalDefenseAuthorizationActforFiscalYear2010Section1246,“AnnualReportonMilitaryandSecurityDevelopmentsInvolvingthePeople’sRepublicofChina,”oftheNationalDefenseAuthorizationActforFiscalYear2010,PublicLaw111-84,whichamendstheNationalDefenseAuthorizationActforFiscalYear2000,Section1202,PublicLaw106-65,providesthattheSecretaryofDefenseshallsubmitareport“inbothclassifiedandunclassifiedform,onmilitaryandsecuritydevelopmentsinvolvingthePeople’sRepublicofChina.Thereportshalladdressthecurrentandprobablefuturecourseofmilitary-technologicaldevelopmentofthePeople’sLiberationArmyandthetenetsandprobabledevelopmentofChinesesecuritystrategyandmilitarystrategy,andofthemilitaryorganizationsandoperationalconcepts,throughthenext20years.ThereportshallalsoaddressUnitedStates-Chinaengagementandcooperationonsecuritymattersduringtheperiodcoveredbythereport,includingthroughUnitedStates-Chinamilitary-to-militarycontacts,andtheUnitedStatesstrategyforsuchengagementandcooperationinthefuture.”(Thispageleftintentionallyblank)MilitaryandSecurityDevelopmentsInvolvingthePeople’sRepublicofChinaIExecutiveSummaryOverthepast30years,Chinahasmadegreatprogressinitspursuitofeconomicgrowthanddevelopment,whichhasallowedChinatoachievehigherlivingstandardsfortheChinesepeopleandhasincreasedChina’sinternationalprofile.Theseeconomicachievements,combinedwithprogressinscienceandtechnology,havealsoenabledChinatoembarkonacomprehensivetransformationofitsmilitary.ThepaceandscopeofChina’smilitarymodernizationhaveincreasedoverthepastdecade,enablingChina’sarmedforcestodevelopcapabilitiestocontributetothedeliveryofinternationalpublicgoods,aswellasincreaseChina’soptionsforusingmilitaryforcetogaindiplomaticadvantageorresolvedisputesinitsfavor.Earlierthisdecade,ChinabegananewphaseofmilitarydevelopmentbyarticulatingrolesandmissionsforthePeople’sLiberationArmy(PLA)thatgobeyondChina’simmediateterritorialinterests.SomeofthesemissionsandassociatedcapabilitieshaveallowedthePLAtocontributetointernationalpeacekeepingefforts,humanitarianassistanceanddisasterrelief,andcounter-piracyoperations.TheUnitedStatesrecognizesandwelcomesthesecontributions.OtherinvestmentshaveallowedthePLAtopursueanti-accessandarea-denialstrategies.StillothersappeardesignedtoimprovethePLA’sabilityforextended-rangepowerprojection,althoughChina’sabilitytosustainmilitarypoweratadistance,today,remainslimited.Asthe2010QuadrennialDefenseReviewReportnotes,“Chinaisdevelopingandfieldinglargenumbersofadvancedmedium-rangeballisticandcruisemissiles,newattacksubmarinesequippedwithadvancedweapons,increasinglycapablelong-rangeairdefensesystems,electronicwarfareandcomputernetworkattackcapabilities,advancedfighteraircraft,andcounter-spacesystems.”Cross-Straiteconomicandculturaltiescontinuedtomakeimportantprogressin2009.Despitethesepositivetrends,China’smilitarybuild-upoppositetheislandcontinuedunabated.ThePLAisdevelopingthecapabilitytodeterTaiwanindependenceorinfluenceTaiwantosettlethedisputeonBeijing’stermswhilesimultaneouslyattemptingtodeter,delay,ordenyanypossibleU.S.supportfortheislandincaseofconflict.Thebalanceofcross-Straitmilitaryforcescontinuestoshiftinthemainland’sfavor.ThePLAhasmademodestimprovementsinthetransparencyofChina’smilitaryandsecurityaffairs.However,manyuncertaintiesremainregardinghowChinawilluseitsexpandingmilitarycapabilities.ThelimitedtransparencyinChina’smilitaryandsecurityaffairsenhancesuncertaintyandincreasesthepotentialformisunderstandingandmiscalculation.AsPresidentObamahassaid,“[theU.S.-China]relationshiphasnotbeenwithoutdisagreementanddifficulty.Butthenotionthatwemustbeadversariesisnotpre-destined.”SustainedandreliableU.S.-Chinamilitary-to-militaryrelationssupportthisgoalbyreducingmistrust,enhancingmutualunderstandingandbroadeningcooperation.China’srecurringdecisiontosuspendmilitaryexchangeshasimpededthiseffort.TheDepartmentofDefensewillcontinuetouseitsinteractionswithChinatoencourageittoplayaconstructiveroleinaddressingcommonsecuritychallengesinAsiaandglobally.Atthesametime,theDepartmentofDefensehasaspecialresponsibilitytomonitorChina’smilitaryandtodeterconflict.Throughforceposture,presence,capabilitydevelopments,andactionstostrengthenalliancesandpartnerships,theDepartmentofDefensedemonstratestheUnitedStates’willandabilitytomaintainpeaceandstabilityintheAsia-Pacific.MilitaryandSecurityDevelopmentsInvolvingthePeople’sRepublicofChinaII(Thispageleftintentionallyblank)MilitaryandSecurityDevelopmentsInvolvingthePeople’sRepublicofChinaIIITableofContentsExecutiveSummary.........................................................................................................................I GlossaryofAcronyms...................................................................................................................V ChapterOne:AnnualUpdate.................................