The first part of this report discusses policy issues regarding such military-to-military (mil-to-mil) contacts. The second part provides a record of such contacts since 1993, when the United States resumed exchanges after suspending them in response to the Tiananmen Crackdown in 1989. Congress has exercised important oversight of the military relationship with China.

This report provides background on China's economic rise and current economic structure and the challenges China faces to keep its economy growing strong, and describes Chinese economic policies that are of concern to U.S. policymakers.

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 questions how China's military modernization should 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.