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 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.

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 provides background and analysis of U.S.-China commercial ties, including history, trends, issues, and outlook.