This report focuses on the potential implications of China's naval modernization for future required U.S. Navy capabilities. This report is based on unclassified open-source information, such as the annual Department of Defense (DOD) report to Congress on China's military power, and published reference sources such as Jane's Fighting Ships.

This report discusses China's maritime and and exclusive economic zone (EEZ) claims in the East China and South China Seas and their effect on U.S. policy and strategy in the region. Topics covered are the history of the territorial disputes and the interests of China, neighboring countries, and the United States in the disputes, maritime disputes in general, relevant treaties and agreements, China's approach to disputes, the United States's approach and position on the disputes, specific issues for Congress to address, and related legislative actions in 2017. Four appendices cover strategic context from an U.S. perspective, U.S. treaties with Japan and the Philippines, and operational rights in the EEZ, and options suggested by observers for strengthening U.S. actions.

The Chinese government has strongly criticized U.S. announcements that it will develop or assist in deploying missile defense systems involving cooperation with U.S. allies in East Asia, and reports of such possible U.S. cooperation with Taiwan. For those in the United States, the U.S. plans have many perceived disadvantages and advantages;1 the latter include notably providing degrees of protection for the United States and its allies against ballistic missile attack. Many in China believe that proposed U.S. development and deployment of ballistic missile defenses at home and in East Asia pose potentially serious complications for China’s ability to use its nuclear weapons to deter possible U.S. pressure and aggression, and to use Chinese ballistic missile capability to exert leverage over Japan, Taiwan, and others in East Asia.

The People's Republic of China (PRC)'s provocative use of military force in the Taiwan Strait has appeared to subside, but not before convincing many in the Congress that the PRC regime continues to flout international norms sensitive to the United States. In addition to challenging stability in the Taiwan Strait, the PRC is seen recently to undermine important U.S. interests regarding nuclear proliferation, intellectual property rights, and missile proliferation. As a result, many in the Congress are pressing for actions -- including economic and other sanctions

Text describes U.S. role in world affairs and is keyed to map. Map projection is "designed to minimize distortions along the 40th parallel which runs approximately through Tokyo and Washington."

Front: Text describes action on various war fronts: North Africa, Southwest Pacific, China-Burma, Plans, Aleutians, Russia Large world map is keyed to text and shows United Nations, Axis and Axis occupied areas, countries with Axis relations broken, and neutral countries. Inset maps: Shrinking battle lines in Tunisia; Crimea and surrounding region showing Nazi held territories. Photographs: Army-Navy expedition lands at Amchitka; Army gunner sets up AA defense at the westernmost U.S. air base in the Aleutians; Navy Seabees take shelter in foxholes; Allied soldiers line up for chow in almost knee-deep mud. Back: Text entitled "So he can fight!" describes the Women's Army Auxiliary Corps.

Front: Text describes action on various war fronts: Solomon Islands, New Guinea, Aleutians, China, India, Western Europe, Yugoslavia, Mediterranean, Russia. Large world map is keyed to text and illustrates time zones around the world. Map insets show Solomon Islands, Russian front. Includes photographs: view of Tulagi; German fighter; Facing the Nazis; Sniper suit; A traitor covers up; Club for U.S. forces on London. Back: British Battle Dress. Includes 6 photograhs, 4 drawings with accompanying text.