Concern has grown in Congress and elsewhere about China's military modernization. The topic is an increasing factor in discussions over future required U.S. Navy capabilities. The issue for Congress addressed in this report can be summed up in the following question: How should China's military modernization be factored into decisions about U.S. Navy programs?

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.