"Space and counterspace capabilities - like missile forces, advanced air and seapower, and cyber capabilities - are critical for China to fight and win modern military engagements", writes the Defense Intelligence Agency in its report, which was released Tuesday.
"The result of this multifaceted approach to technology acquisition is a PLA (People's Liberation Army) on the verge of fielding some of the most modern weapon systems in the world", the report says.
While DIA is most concerned about an eventual military action against Taiwan, in the near future its primary concerns rest in the South and East China Seas, where the Chinese military has built up and militarized artificial islands in areas claimed by China and other nations.
"China shifted funds and efforts to acquiring technology by any means available".
Ashley listed China's most potent weapons, some of which are the most advanced in the world in their field.
The report adds China has probably used unfair means to acquire cutting edge military technology.
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"The biggest concern is that ... they are getting to a point where the PLA leadership may actually tell Xi Jinping that they are confident in their capabilities", the official said, referring to China's president.
Mnuchin believes that reducing or eliminating some of the tariffs imposed previous year may advance trade talks with China and could convince the Chinese government to make concessions-though other top trade officials, including U.S. Trade Representative Robert Lighthizer, remain unconvinced and worry that rolling back tariffs could be a sign of weakness, according to the Journal.
"In some areas, it already leads the world", the Pentagon report adds, according to Agence France-Presse.
"Beijing's anticipation that foreign forces would intervene in a Taiwan scenario led the PLA to develop a range of systems to deter and deny foreign regional force projection", the report stated.
The United States is closely watching Chinese intentions toward Taiwan, concerned that Beijing's growing military prowess may increase the risk it could one day consider bringing the self-ruled island under its control by force, a US official said on Tuesday.
These bases, and other improvements to the PLA's ability to project power during the next decade, will increase China's ability to deter by military force and sustain operations overseas, the report said.
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These include submarines, anti-ship and anti-air missiles.
"China's leaders hope that possessing these military capabilities will deter pro-independence moves by Taiwan or, should deterrence fail, will permit a range of tailored military options against Taiwan and potential third-party military intervention", the report explained.
Taiwanese President Tsai Ing-wen refused to acknowledge a "one China" solution and said she will not back down, despite losing re-election to a more Beijing-friendly opponent.
China's efforts to enhance its presence overseas, such as establishing its first foreign military base in Djibouti and boosting economic connectivity by reinvigorating the New Silk Road Economic Belt and 21st Century Maritime Road under the "Belt and Road Initiative" (BRI), could enable the PLA to project power at even greater distances from the Chinese mainland, it said.
"I think both sides have managed to operate professionally".
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