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Annual Report to Congress: Military and Security Developments Involving the People’S Republic of China

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Annual Report to Congress: Military and Security Developments Involving the People’S Republic of China OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China ANNUAL REPORT TO CONGRESS Military and Security Developments Involving the People’s Republic of China 2017 Office of the Secretary of Defense Preparation of this report cost the Department of Defense a total of approximately $97,000 in Fiscal Years 2016-2017. This includes $3,000 in expenses and $94,000 in DoD labor. Generated on 2017 May 15 RefID: C-B066B88 OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China 2017 A Report to Congress Pursuant to the National Defense Authorization Act for Fiscal Year 2000 Section 1246, “Annual Report on Military and Security Developments Involving the People’s Republic of China,” of the National Defense Authorization Act for Fiscal Year 2010, Public Law 111-84, which amends the National Defense Authorization Act for Fiscal Year 2000, Section 1202, Public Law 106- 65, provides that the Secretary of Defense shall submit a report “in both classified and unclassified form, on military and security developments involving the People’s Republic of China. The report shall address the current and probable future course of military-technological development of the People’s Liberation Army and the tenets and probable development of Chinese security strategy and military strategy, and of the military organizations and operational concepts supporting such development over the next 20 years. The report shall also address United States-China engagement and cooperation on security matters during the period covered by the report, including through United States-China military-to-military contacts, and the United States strategy for such engagement and cooperation in the future.” OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China Executive Summary OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China In 2016, the armed forces of the Chinese China has leveraged its growing power to assert Communist Party (CCP) began implementing its sovereignty claims over features in the East the sweeping organizational reforms that and South China Seas. China has used coercive President Xi Jinping and other Chinese leaders tactics, such as the use of law enforcement unveiled in 2015. This reorganization is the vessels and its maritime militia, to enforce latest phase in China’s long-term military maritime claims and advance its interests in modernization program, which China’s leaders ways that are calculated to fall below the have characterized as essential to achieving threshold of provoking conflict. In the East great power status and what President Xi calls China Sea, China continued to use maritime the “China Dream” of national rejuvenation. law enforcement ships and aircraft to patrol The leadership portrays a strong military as near the Senkaku Islands to challenge Japan’s critical to advancing China’s interests, claim. preventing other countries from taking steps that would damage those interests, and In the South China Sea, China continued ensuring that China can defend itself and its construction at its military outposts in the sovereignty claims. Spratly Islands. Important milestones in 2016 included landing civilian aircraft on its airfields The military reforms seek to enhance the on Fiery Cross, Subi, and Mischief Reefs, as People’s Liberation Army’s (PLA) ability to well as landing a military transport aircraft on conduct joint operations; improve its ability to Fiery Cross Reef. In July 2016, an arbitral fight short-duration, high-intensity regional tribunal constituted under the compulsory conflicts at greater distances from the Chinese dispute settlement procedures in the United mainland; and strengthen the CCP’s control Nations Convention on the Law of the Sea over the military. The changes instituted last (LOSC), issued a ruling in favor of the year included establishing new command Philippines with respect to issues involving the elements and units including the Joint Staff interpretation and application of the LOSC. Department, the Joint Operations Command Among other things, the tribunal ruled that Center, the Overseas Operations Office, and China’s “nine-dash line” cannot represent a the Joint Logistics Support Force. The PLA lawful maritime claim to the extent that any of also established five regionally-based joint the claims it reflects would exceed the limits of theaters, replacing the decades-old ground China’s maritime entitlements under the force-dominated seven military regions (MR). Convention. The tribunal did not rule on sovereignty claims to land features, an issue that is outside the scope of the Convention. China rejected the ruling. i OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China Relations between China and Taiwan cooled in technologies, controlled equipment, and other 2016, after Tsai Ing-wen won the Taiwan materials. presidential election in January, bringing the Democratic Progressive Party (DPP) back to As China’s global footprint and international power for the first time since 2008. China has interests have grown, its military stressed that Taiwan must accept the so-called modernization program has become more “1992 Consensus,” which holds that China and focused on supporting missions beyond Taiwan are part of “one China” but allows for China’s periphery, including power projection, different interpretations, for there to be peace sea lane security, counterpiracy, peacekeeping, and stability in the Taiwan Strait. and humanitarian assistance/disaster relief (HA/DR). In February 2016, China began China’s leaders remain focused on developing construction of a military base in Djibouti that the capabilities to deter or defeat adversary could be complete within the next year. China power projection and counter third-party likely will seek to establish additional military intervention—including by the United bases in countries with which it has States—during a crisis or conflict. China’s longstanding, friendly relationships. officially-disclosed military budget grew at an average of 8.5 percent per year in inflation- U.S. defense contacts and exchanges support adjusted terms from 2007 through 2016, and overall U.S. policy and strategy toward China. Chinese leaders seem committed to increases They are carefully tailored to clarify and in defense spending for the foreseeable future, develop areas of cooperation where it is in our even as China’s economic growth slows. mutual interest and to manage and reduce risk, including by encouraging China to be more China’s military modernization is targeting transparent about its military and security capabilities with the potential to degrade core affairs. They are conducted in accordance with U.S. military-technological advantages. To the statutory limitations of the National support this modernization, China uses a Defense Authorization Act Fiscal Year 2000. variety of methods to acquire foreign military and dual-use technologies, including cyber The United States will continue to monitor theft, targeted foreign direct investment, and China’s military modernization, and it will exploitation of the access of private Chinese continue to adapt its forces, posture, nationals to such technologies. Several cases investments, and operational concepts to emerged in 2016 of China using its intelligence ensure the United States retains the ability to services, and employing other illicit approaches defend the homeland, deter aggression, protect that violate U.S. laws and export controls, to our allies and partners, and preserve regional obtain national security and export-restricted peace, prosperity, and freedom. ii OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China Executive Summary i Chapter 1: Annual Update 1 Chapter 2: Understanding China’s Strategy 37 Chapter 3: Force Modernization Goals and Trends 49 Chapter 4: Resources for Force Modernization 65 Chapter 5: Force Modernization for a Taiwan Contingency 75 Chapter 6: U.S.-China Military-to-Military Contacts 85 Appendix I: Military-to-Military Exchanges 91 Appendix II: China and Taiwan Forces Data 93 Appendix III: Acronyms 96 OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China 1 ANNUAL UPDATE OFFICE OF THE SECRETARY OF DEFENSE Annual Report to Congress: Military and Security Developments Involving the People’s Republic of China This chapter summarizes significant In late 2015, President Xi introduced a series developments in China’s military and security of reforms that seek to improve leadership, activities over the past year with an emphasis administration, and command of joint on developments highlighted in section 1246 operations across the PLA by 2020. In 2016, of the National Defense Authorization Act these reforms included: (NDAA) for Fiscal Year 2010 (P.L. 111-84). > Establishing Theater Commands. In
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