This report examines the political and economic relationship between the United States and China. The first part provides an overview of U.S.-China relations and the Obama Administration policy toward China. A summary of major policy issues follows, including security issues and Taiwan, economic issues, climate change and clean energy cooperation, and human rights. The report includes five appendices. Appendix A provides a chronology of meetings between the U.S. and Chinese presidents and information about select bilateral dialogues. Appendix B analyzes the Joint Statement issued during President Hu’s January 2011 state visit. Appendix C lists congressionally mandated annual reports related to China. Appendices D and E list China-related legislation introduced in the 112th and 111th Congresses.

This report discusses China's naval modernization effort , that encompasses a broad array of weapon acquisition programs, including anti-ship ballistic missiles (ASBMs), submarines, and surface ships. It also points out an overview of China's Naval Modernization Effort.

This report focuses on the implications that certain elements of China's military modernization may have for future required U.S. Navy capabilities. The issue for Congress addressed in this report is: How should China's military modernization be factored into decisions about U.S. Navy programs? Congress's decisions on this issue could significantly affect future U.S. Navy capabilities, U.S. Navy funding requirements, and the U.S. defense industrial base, including the shipbuilding industry.