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  • 1. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of ChinaANNUAL REPORTTO CONGRESSMilitary and Security DevelopmentsInvolving the Peoples Republic of China 2013Office of the Secretary of DefensePreparation of this report cost the Department of Defense a total of approximately $95,000 in Fiscal Years 2012-2013.

2. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of China 3. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of ChinaAnnual Report to Congress:Military and Security Developments Involvingthe Peoples Republic of China 2013A Report to Congress Pursuant to the National Defense Authorization Act forFiscal Year 2000Section 1246, Annual Report on Military and Security Developments Involving the Peoples Republic ofChina, of the National Defense Authorization Act for Fiscal Year 2010, Public Law 111-84, which amendsthe National Defense Authorization Act for Fiscal Year 2000, Section 1202, Public Law 106-65, provides thatthe Secretary of Defense shall submit a report in both classified and unclassified form, on military andsecurity developments involving the Peoples Republic of China. The report shall address the current andprobable future course of military-technological development of the Peoples Liberation Army and the tenetsand probable development of Chinese security strategy and military strategy, and of the military organizationsand operational concepts supporting such development over the next 20 years. The report shall also addressU.S.-China engagement and cooperation on security matters during the period covered by the report,including through U.S.-China military-to-military contacts, and the U.S. strategy for such engagement andcooperation in the future. 4. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of ChinaExecutive Summary 5. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of ChinaiTHE PEOPLES REPUBLIC OF CHINA (PRC)continues to pursue a long-term,comprehensive military modernizationprogram designed to improve the capacity ofits armed forces to fight and win short-duration, high-intensity regional militaryconflict. Preparing for potential conflict in theTaiwan Strait appears to remain the principalfocus and primary driver of Chinas militaryinvestment. However, as Chinas interestshave grown and as it has gained greaterinfluence in the international system, itsmilitary modernization has also becomeincreasingly focused on investments in militarycapabilities to conduct a wider range ofmissions beyond its immediate territorialconcerns, including counter-piracy,peacekeeping, humanitarian assistance/disasterrelief, and regional military operations. Someof these missions and capabilities can addressinternational security challenges, while otherscould serve more narrowly-defined PRCinterests and objectives, including advancingterritorial claims and building influence abroad.To support the Chinese Peoples LiberationArmys (PLA) expanding set of roles andmissions, Chinas leaders in 2012 sustainedinvestment in advanced short- and medium-range conventional ballistic missiles, land-attack and anti-ship cruise missiles, counter-space weapons, and military cyberspacecapabilities that appear designed to enable anti-access/area-denial (A2/AD) missions (whatPLA strategists refer to as counter-intervention operations). The PLA alsocontinued to improve capabilities in nucleardeterrence and long-range conventional strike;advanced fighter aircraft; limited regionalpower projection, with the commissioning ofChinas first aircraft carrier, the Liaoning;integrated air defenses; undersea warfare;improved command and control; and moresophisticated training and exercises acrossChinas air, naval, and land forces.During their January 2011 summit, U.S.President Barack Obama and then-PRCPresident Hu Jintao jointly affirmed that ahealthy, stable, and reliable military-to-militaryrelationship is an essential part of [their] sharedvision for a positive, cooperative, andcomprehensive U.S.-China relationship.Within that framework, the U.S. Departmentof Defense seeks to build a military-to-militaryrelationship with China that is sustained andsubstantive, while encouraging China tocooperate with the United States, our allies andpartners, and the greater internationalcommunity in the delivery of public goods. Asthe United States builds a stronger foundationfor a military-to-military relationship withChina, it also will continue to monitor Chinasevolving military strategy, doctrine, and forcedevelopment and encourage China to be moretransparent about its military modernizationprogram. In concert with its allies and partners,the United States will continue adapting itsforces, posture, and operational concepts tomaintain a stable and secure Asia-Pacificsecurity environment. 6. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of ChinaContents 7. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of ChinaExecutive Summary iChapter 1: Annual Update 1Chapter 2: Understanding Chinas Strategy 15Chapter 3: Force Modernization Goals and Trends 29Chapter 4: Resources for Force Modernization 45Chapter 5: Force Modernization for a Taiwan Contingency 55Chapter 6: U.S.-China Military-to-Military Contacts 61Special Topic: Space-Based Imaging and Remote Sensing 65Special Topic: Chinas First Aircraft Carrier 65Special Topic: PLA Air Force Stealth Aircraft 66Special Topic: PLA Integrated Air Defenses 67Appendix I: Military-to-Military Exchanges 69Appendix II: China and Taiwan Forces Data 75Appendix III: Additional Maps and Chart 79 8. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of China1ANNUAL UPDATE 9. OFFICE OF THE SECRETARY OF DEFENSEAnnual Report to Congress: Military and Security Developments Involving the Peoples Republic of China1DEVELOPMENTS IN CHINASBILATERAL OR MULTILATERALRELATIONSHIPSChinas military engagement with othercountries seeks to enhance Chinasinternational presence and influence byimproving relationships with foreign militaries,bolstering Chinas international and regionalimage, and assuaging other countriesconcerns about Chinas rise. The PeoplesLiberation Armys (PLA) engagementactivities assist its modernization through theacquisition of advanced weapons systems andtechnologies, increased operational experienceboth throughout and beyond Asia, and accessto foreign military practices, operationaldoctrine, and training methods.In January 2013, Chinas Ministry of NationalDefense released information about the PLAs2012 military diplomacy, which it stated hadstood severe tests under a difficultinternational and regional situationthroughout the year. In 2012, senior militaryofficials from at least 25 countries visitedChina, including officials from Australia,Germany, Russia and Ukraine. Senior PLAofficials visited at least 33 countries, includingIndia, Poland, Tanzania, and Turkey. ThePLA participated in UN peacekeepingoperations (PKO), carried out humanitarianassistance and disaster relief work in Pakistanand conducted the second global goodwillvoyage of the PLA Navy ZHENG HEtraining vessel. PLA leaders participated invarious multilateral meetings, including theDefense Ministers Meeting of the ShanghaiCooperation Organization (SCO) and theAssociation of Southeast Asian Nations(ASEAN) Regional Forum Security PolicyConference.Combined Exercises. PLA participation inbilateral and multilateral exercises isincreasing. The PLA derives political benefitthrough increased influence and enhanced tieswith partner states and organizations. Suchexercises provide the PLA opportunities toimprove capabilities and gain operationalinsights by observing tactics, commanddecision-making, and equipment used bymore advanced militaries.In 2011 and 2012 alone, the PLA held 21 jointexercise and training events with foreignmilitaries, compared to 32 during the entire11thFive-Year Plan period (2006-2010). Theseactivities included military exercises with SCOmembers, naval exercises, ground forcestraining, peacekeeping, and search and rescueoperations/missions. China also conductedjoint training for operations other than war,including the 2011 COOPERATION SPIRIThumanitarian assistance/disaster relief(HA/DR) exercise with Australia. Chinaobserved KHAN QUEST-11, a peacekeepingexercise in Mongolia the first time it haddone so. The PLA Navy conducted maritimeexercises with Russia, Vietnam, and Thailand 10. and counter-piracy exercises with France andthe United States.The PLA Air Force (PLAAF) conductedunprecedented bilateral training during 2011,including its first bilateral air exercise withPakistan and training with air forces in Belarusand Venezuela. In contrast, the PLA AirForce participated in only one bilateralexercise in 2012 an airborne trainingexercise with Belarus in November. PEACEMISSION 2012, conducted under theauspices of the SCO, did not include PLA AirForce participation as in the past, and insteadfocused on what SCO nations calledcounterterrorism training, which moreclosely resembles training to suppress armedopposition within a member country.Peacekeeping Operations (PKO). Overthe past ten years, China has increased itscommitment to UN PKO by approximatelyten fold, building to its current level ofapproximately 2,000 personnel in 11operations, mostly in sub-Saharan Africa andthe Middle East. This level of support hasbeen steadily maintained since 2008 and is thehighest among the permanent mem