This report focuses on the potential implications of China's naval modernization for future required U.S. Navy capabilities. The report particularly discusses how potential United States responses to China's military modernization effort -- including its naval modernization effort -- have emerged as a key issue in U.S. defense planning.

This report presents policy and oversight issues for Congress arising from maritime territorial disputes involving China in the South China Sea (SCS), East China Sea (ECS), and an additional dispute over whether China has a right under international law to regulate U.S. and other foreign military activities in its maritime Exclusive Economic Zone (EEZ).

This report focuses on current developments in Taiwan, analyzing how those developments are affecting choices the United States makes about its policy toward Taiwan, specifically, and toward the People's Republic of Chine (PRC) more broadly.

This report presents policy and oversight issues for Congress arising from maritime territorial disputes involving China in the South China Sea (SCS), East China Sea (ECS), and an additional dispute over whether China has a right under international law to regulate U.S. and other foreign military activities in its maritime Exclusive Economic Zone (EEZ).

China’s economy remained relatively healthy in 2002, despite economic slowdowns in other parts of the world. Foreign investment continued to pour into China, and the Chinese government effectively used public spending to boost the economy. However, painful economic reforms will be necessary to keep the economic strong in 2003 and beyond. The recent outbreak in early 2003 of a very contagious virus called SevereAcuteRespiratory Syndrome (SARS) in China appears to have had a short-term negative impact on the Chinese economy.