China’s preference is to develop and produce a weapon system domestically to satisfy a particular long-term military requirement. To accomplish this, it uses technologies and commodities from domestic and foreign sources. The second track involves acquiring advanced foreign weapon systems and technologies to satisfy immediate military requirements, often also acquiring related manufacturing technologies. This demand for technology transfer as part of an end- item sale is known as an “offset.” Since at least 1993, China reportedly has acquired advanced Russian weapon technologies for development of air, ground, and naval weapon systems, as well as adva nced materials and manufacturing technologies associated with missiles, lasers, and space system manufacturing. Beijing has expressed interest in or is currently negotiating the purchase of additional Russian weapon systems and military technology, to inc lude additional KILO submarines, antisubmarine helicopters, and various aircraft engines. China’s interest in assembling or producing Russian weapons apparently remains strong. China and Russia have typically maintained a robust defense and security rela tionship, including bilateral policy consultations and professional military-to- military intelligence exchanges. Selling arms and military technology to China is a major component of Russia's foreign and security policy. Russian conventional weapon technology transfers will help advance the speed of development and improve the lethality of every major category of weapon system under development in China. The pace of this technology transfer continues unabated as China strives for self-sufficiency. Military-technical cooperation with Beijing acts as a source of revenue to fill state coffers, support defense industries, and enrich influential Russian individuals and groups. It also provides Moscow with a vehicle to bolster relations with an emerging power and provides a primary source of funding for continued Russian military R&D efforts. Beijing reportedly purchased, on average, some $1.2 billion worth of Russian weapons each year during the 1990s, accounting for about 30 percent of total Russian arms sales. However, beginning in 1999, China’s purchases from Russia rose and have averaged approximately twice that amount annually. Russian leaders are not likely to significantly reduce their sales effort in China, even under pressure from a third party. Similarly, improved U.S. - Russian relations after the 11 September 2001 terrorist attacks are unlikely to cause Moscow to scale down arms transfers to Beijing. Because of persistent concerns over the direction of China’s foreign and security policies, Russia’s leadership has placed some limits on the types and sophistication of weapons sold to China. However, arms and technology sales also strengthen Russia’s relationship with China. Access to Russian weapons gives Beijing a strong stake in cooperating with Moscow. Russian leaders probably view China’s commitment to good relations as particularly important because of the length of their common border, demographic trends in Russia’s eastern regions, Beijing’s growing power, and mutual concern over U.S. policies, in particular the growing U.S. military presence in Central Asia. Ukraine is a moderate supplier in the world arms market and has active military cooperation agreements with dozens of nations, including China; however, Kiev’s arms sales to China make up only a small percentage of its total world sales. Since Ukraine
has no political sanctions against China, no diplomatic barriers prevent growth in military cooperation agreements or arms sales. Ukraine most likely would resist international pressure to limit cooperation with China, or it would declare its cooperation but move some of its sales into the gray market to obscure direct government links. The Belarusian arms trade is closely tied to that of Russia. Minsk uses arms sales to generate hard currency and to keep its struggling arms industry afloat. China is a lucrative target for arms sales, and, since there are no internationally recognized sanctions against China, Minsk does not perceive a need to limit its sales or military cooperation with Beijing. Although Belarus is a signatory to major international agreements regarding proliferation of weapons of mass destruction, it does not believe it should be subject to any constraints on transferring conventional technologies and systems. Uzbekistan recently joined the Shanghai Cooperation Organization (SCO), in which China is a leading member. Despite some concerns over Beijing’s intentions in Central Asia, Uzbekistan’s bilateral military cooperation with Beijing has increased in recent years, primarily through professional military exchanges and military assistance. Available evidence indicates that arms-related sales and technology transfers to China are limited. Kazakhstan apparently pursues defense and security contacts with Beijing primarily as a mechanism to promote economic cooperation and address shared regional security issues, such as Islamic extremism, border delimitation, and demilitarization. Available information does not show a significant Kazakh-Chinese military arms relationship. Any growth in bilateral military cooperation, including arms sales or professional military exchanges, most likely would reflect a balance of Kazakhstan's interests to support economic and security cooperation with the Russian-led Commonwealth of Independent States while pursuing closer economic ties and continuing dialogue with China through the SCO framework. Although Kyrgyz military contacts with China have increased in recent years, no available information suggests significant arms transfers to China. Kyrgyzstan has agreed to headquarter the SCO Counterterrorism Center in Bishkek, indicating that closer defense and security relations with Beijing most likely will include cooperative measures to combat Islamic extremism. In late 2002, the PLA and the Kyrgyz military held a joint exercise on the border to coordinate their counterterrorism efforts. Like Kyrgyzstan, Tajikistan is a member of the Commonwealth of Independent States Collective Security Pact and the SCO. While Tajikistan faces practical political restraints on military cooperation with China, it reportedly has begun a program of military-tomilitary exchanges with Beijing. However, there is no evidence of arms or technology transfers from Tajikistan to China. The remaining FSU states -- Armenia, Azerbaijan, Estonia, Georgia, Latvia, Lithuania, Moldova, and Turkmenistan -- are not believed to have a significant defense, security, or military-technical component to their bilateral relations with China. Implications of a Potential Lifting of the EU Arms Embargo Efforts underway to lift the European Union (EU) embargo on China will provide additional opportunities to acquire specific technologies from Western suppliers. In the near-term, Beijing likely will continue to look to Russia to fulfill its military procurement goals. Russia most likely will remain the primary supplier of China’s advanced conventional weapons, with Europe acting as an emerging supplier; however, a more diverse post-embargo supplier base may enhance China’s leverage in negotiating purchases of advanced conventional weapons and technology. IV. FORCE MODERNIZATION PLA Strategy and Doctrine Influence on China’s Investment in Military Modernization China’s military modernization is oriented on developing the capabilities to fight and win “local wars under modern high- tech conditions.” Based largely on observations of U.S. and allied operations since Operation DESERT STORM, PLA modernization envisions seeking precision-strike munitions, modern command and control systems, and state-ofthe- art ISR platforms. Beijing sees its potential future adversaries, particularly the U.S. Armed Forces, acquiring these advanced systems, and this is a driver in PLA defensive and offensive force modernization. In addition, although the PLA views these components as significant force multipliers, it also sees them as centers of gravity that, if denied, degraded, or destroyed, could greatly hinder a modern enemy’s capabilities to wage war. In this context, the PLA has sought to upgrade key components of its military through purchases of foreign weapons and domestic development. These efforts have focused mainly on modern aircraft, ballistic missiles, naval combatants and weapons, advanced C4ISR systems, and information warfare. Altho ugh Beijing has emphasized these programs, it faces modernizing a military that comprised mainly older generation weapons with limited capabilities against a modern adversary. In addition, China faces challenges in integrating the newly acquired equipment. PLA Weapon Acquisition Strategy Air Forces China continues its force-wide modernization program to improve overall combat capabilities in the next decade. Beijing continues to acquire advanced aircraft and weapons, with the goal of improving the abilities of the PLAAF and PLANAF to defend national airspace from attack and to interdict and strike enemy forces at greater distances from China’s land and sea borders. China continues to upgrade its air-to-air capabilities with additional Su-27/FLANKER aircraft produced from licensed Russian kits and Su-30MKK multirole fighter aircraft purchased directly from Russia. The PLANAF is expected to acquire a naval strike version of the Su-30 by the end of 2004. China has acquired the AA-12/ADDER activeradar- guided air-to-air missile from Russia and continues to develop advanced air-to-air munitions. China flew its domestically developed FC-1 lightweight fighter for the first time during 2003. Also in development is a domestic advanced fighter, the F-10, which is to become operational in the next few years. In addition, Beijing has continued to pursue domestic upgrades to its F-8II fighters. Since China received its first advanced aircraft in 1992, training, tactics, and operational concepts have progressed slowly. In the past 3 years, the pace of advanced fighter integration has quickened. Air combat tactics continue to evolve, and training is becoming more advanced, although it remains behind Western standards. With the acquisition of multirole aircraft and advanced munitions, China is beginning to make significant strides toward improving its maritime and land-attack strike capabilities. The primary focus is on improving sensors and weapons to increase the survivability and lethality of attack airframes, allowing them to defend themselves while en route to the target and to deliver guided munitions once there. The Su-30 aircraft destined for the PLANAF will be capable of supporting the launch of radar- guided air-to-surface missiles (ASMs), such as the AS-X-17b/KRYPTON antiship cruise missile. China still is developing the FB-7, an all-weather, supersonic, medium-range fighter-bomber with an antiship mission. Improvements to the FB-7 most likely will include a better radar, nightattack avionics, and more advanced weapons. With development and acquisition of guided munitions, land-attack capabilities are improving as well; important developments in this area include antiradiation missiles and laser- and TV-guided ASMs and bombs the Su-30MKK can deliver. China has sought to improve the capabilities of its special- mission aircraft, with a focus on electronic warfare aircraft, C4ISR platforms, and tankers. China reportedly has developed jamming versions of several of its larger aircraft, and it may have several programs under way to deploy new standoff and escort jammers using bombers, transports, tactical aircraft, and unmanned aerial vehicles (UAVs). China has been pursuing an advanced airborne surveillance and control aircraft since the early 1990s. In 1999, it introduced an airborne early warning (AEW) aircraft, the Y-8 AEW. Israel’s cancellation of the more capable PHALCON program in 2001 forced Beijing to pursue other alternatives, including possible acquisition of the A-50/MAINSTAY AWACS aircraft from Russia or a domestic program. China began developing its air-to-air refueling capability in the mid-1980s using a converted B-6/BADGER bomber as an aerial tanker. PLANAF fighters and tanker aircraft appear to train only on an irregular basis. China is investing considerably in UAV development. The PLA has a number of short- and medium- range UAVs in its inventory for reconnaissance, surveillance, and electronic warfare roles. Research is under way to develop a UAV that eventually will enable continual surveillance well beyond China’s coastal waters. Air Defense Systems Much of China’s more recent air defense modernization effort extends from Beijing’s observation of Western military campaigns beginning with the Gulf War in early 1991. Employment of precision-guided munitions, stealth aircraft, and airborne C4I alerted Beijing to the limitations of its air defenses. Current Chinese air defense acquisitions are an effort to address these threats, as well as extend air defense coverage beyond point defense of major cities and other high- value assets. The design of the domestic HQ-9 surface-to-air missile (SAM) reportedly was influenced by these observations, as were plans to upgrade China’s C4I system. Modernization is occurring in all services. Significant developments over the past few years to improve China’s integrated air defense system include: · Purchase of advanced Russian SAMs, such as the SA-10 and SA-20, to protect against a perceived cruise missile threat and to extend air defense coverage against conventional aircraft. · Development of an antiradiation SAM, most likely intended to target AWACS aircraft and standoff jamming platforms. · Purchase of advanced tactical SAMs for short-range point defense and protection of ground forces, to include the SA-15 from Russia. · Development of the LY-60 tactical SAM system for ships and several shoulderfired SAM systems, such as the QW-1, QW-2, and FN-6, to replace the domestic HN- 5. · Development of a land-based version of the long-range HQ-9, to precede a naval version, designed to be a long-range counter to high-performance aircraft, cruise missiles, ASMs, and tactical ballistic missiles. The PLAN is addressing its longstanding concerns about its capability to engage enemy aircraft, cruise missiles, and precision-guided munitions. The problem has become more pressing as the Navy strives to operate at greater distances from the protection of landbased air defenses. Currently, PLAN surface combatants have a limited, mainly selfdefense, antiair warfare capability. Future PLAN air defense improvements include development of SAMs to provide area defense. This effort has led to continuing exchanges with Russia on air defense-related radars and missiles. The SA-N-7 provides the most capable system in the near term. Technology from the SA-N-7 probably could assist with development of a domestic naval SAM system. In the next decade, the PLAN could develop a naval missile roughly equivalent to the shore-based SA-10/20s or purchase them from Russia. Although China prefers domestic SAM development, whether it will be able to build its own equivalent within an acceptable period is uncertain. Purchases of additional, more advanced Russian weapons may be required. Conventional Missile Systems China has an extensive and well-established ballistic missile industrial infrastructure and has developed and produced a wide variety of land- and sea-based ballistic missiles. Beijing is concentrating on replacing liquid-propellant missiles with mobile solidpropellant ones, reflecting concerns about survivability, maintenance, and reliability. Development of land-attack cruise missiles for both theater and strategic missions is a high priority, and air-, ground-, and land-based versions of these weapons most likely will be operational within the next 5 to 10 years. Although China currently produces several types of land-, sea-, and air- launched cruise missiles, most are short range and for antiship operations. All of China’s known SRBM assets are believed to be based in the Nanjing Military Region opposite Taiwan. China has about 500 SRBMs in its deployed inventory. It is emphasizing SRBM systems, and the size of the force is likely to increase substantially over the next few years. The accuracy and lethality of this force also are increasing. The PLA continues production of the CSS-7 and is developing variants of the CSS-6 that put Okinawa within range when the missiles are forward-deployed or Taiwan when they are deployed near garrison. In the future, China will have the option of employing conventionally armed medium-range ballistic missiles (MRBMs), which will extend the range of its conventional missile strike force. Nuclear Force Modernization A ballistic missile modernization program is under way to upgrade all classes of missiles, both qualitatively and quantitatively. Beijing intends this program to improve its nuclear deterrence by increasing the number of warheads that can target the United States and augmenting the nuclear force’s operational capabilities for contingencies in East Asia. China is replacing all of its roughly 20 CSS-4 Mod 1 intercontinental ballistic missiles (ICBMs) with the longer range CSS-4 Mod 2. Development of the DF-31 ICBM is progressing, and deployment should begin later this decade. China also is developing two follow-on extended-range versions of the DF-31: a solid-propellant, mobile ICBM and a solid-propellant submarine- launched ballistic missile, the JL-2, which will be deployed on a new ballistic missile submarine by decade’s end. The Second Artillery is continuing to supplement its aging inventory of liquid-propellant CSS-2 intermediate-range ballistic missiles with the solid-propellant, road-mobile CSS-5 MRBM. China currently has about 20 ICBMs capable of targeting the United States. This number could increase to about 30 by 2005 and may reach up to 60 by 2010. Ground Forces The focus of Beijing’s ground force modernization is to continue force reductions begun as early as the mid-1980s. Drawdowns will continue through the next decade and could reduce PLA forces by 500,000 personnel. The objective of this restructuring is to reduce the costs of supporting a large standing army, improve professionalism, and better equip and train a smaller force. The most recent and still ongoing round of force reductions began in 2003 and most likely will be complete by 2005, resulting in a drawdown of 200,000 troops. This reduction will cut a large portion of the logistic force and transfer nonwarfighter functions to the civilian sector but leave the regular infantry relatively untouched. One goal of the reduction is to free funds for key units and equipment acquisitions; however, the size of the PLA ground forces suggests that continued modernization will remain deliberate and limited through at least 2010. During the next two decades, mechanized infantry, airborne, armored, and army aviation units will make up a much larger percentage of the force. In addition, China has recently focused on increasing the capabilities of reserve and militia units, as well as exploring ways to use civilian assets, such as ships and aircraft, to support military operations. With the focus on PLA modernization and restructuring, the recent fielding of new equipment has been limited and, with some notable exceptions, has not appreciably improved the capabilities of China’s ground forces. Even with consolidation of ground force assets into fewer units, the army remains so large as to impede rapid equipment modernization throughout its force structure. However, new equipment, although not being deployed throughout the whole of China, is being deployed to the PLA’s strategically important areas, especially in the southeast. Equipment modernization within the PLA is focused on deploying more advanced tanks, upgrading older models, and continuing extensive development of next-generation models. The PLA has several new or updated armor assets making their way into the ground force inventory, to include a light tank, an amphibious tank, and an amphibious armored personnel carrier (APC). Production of the Type 96 tank continues, with about 1,500 expected to be deployed by 2005. The Type 98, the PLA’s most modern tank, is likely to remain minimally fielded in the next two decades, probably because of production costs. China also is considering upgrading older Type 69 main battle tanks with new fire-control systems, engines, turrets, and explosive reactive armor and designing a next-generation infantry fighting vehicle (IFV) incorporating the upgraded version of Russian BMP-3 turret technologies (including the fire-control system). Reportedly, a prototype IFV vehicle is undergoing testing. Beijing also has ongoing efforts in artillery development and UAV research. The former emphasizes qualitative improvements to the PLA’s artillery forces over quantitative production. Progress continues on an advanced multiple rocket launcher and a selfpropelled amphibious howitzer. Interest in UAVs, mainly reconnaissance versions for use with the ground forces, underscores the PLA’s requirements to increase reconnaissance and air defense capabilities. Among the representative models produced in the past few years are some dual- use versions, such as the W-50 UAV, which can be employed for missions such as reconnaissance, radio-relay, and electronic jamming. Another UAV starting to enter the inventory is the ASN-206. Its primary military applications reportedly are day and night reconnaissance, battlefield surveillance, target location, artillery fire correction, and battle damage assessment. The PLA has devoted considerable resources to developing special forces, which are an integral element of China’s ground force. They are expected to play an important role in achieving objectives in which limited goals, scale of force, and time would be crucial to victory in a number of military scenarios. Special forces missions most likely include conducting surveillance and battle damage assessment; locating or destroying C4I assets, transport nodes, and logistic depots; capturing or destroying airfields and ports; supporting invasion forces; destroying air defenses; and conducting denial and deception and information operations. China’s Army Aviation forces provides only minimal support to ground or amphibious operations despite a growing inventory of helicopters, which currently number about 150- 250. China has acquired a number of Russian Mi-171V5 medium helicopters in the past few years. Further helicopter deliveries could be planned for the near term. In addition, production of the Chinese Z-10 armed helicopter is progressing. China still lacks a heavy- lift and a dedicated attack helicopter. However, whether China feels the need to fill the heavy- lift gap by acquiring such helicopters remains in question In addition to procuring new equipment, the PLA is improving the visibility and management of materiel in its logistics. The main objective of this effort appears to be directed toward improving fuel management, with several different fuel storage locations being upgraded with computerized inventory management systems. The inventory management systems are being networked to provide total asset visibility across military regions and the country. Much has been written in the last year about fiber-optic logistic networks. Examples of some recently developed systems are the Army Oil Depot Information System Platform, Theater POL Supply and Management System, Storehouse Automated Operations System, Automatic Fuel Transmission System, POL Support Decisionmaking System, Ammunition Depot Network Automated Support Management System, and a Video Logistics System. Other key areas being modernized are food and medical services. Naval Forces In recent years, the PLAN’s maritime mission has evolved from a static coastal defense into an “active offshore defense.” This change in operations requires newer, more modern warships and submarines capable of operating at greater distances from China’s coast for longer periods. To meet the challenges of its new defense strategy, China has active surface combatant, submarine, and amphibious ship construction programs, with several vessels currently under construction and plans for additional units. One of the top priorities for the PLAN during the 10th Five-Year Plan is manufacturing submarines. Where Beijing believes domestic production cannot meet defense needs it has contracted, mainly with Russia and Ukraine, to purchase weapons and equipment. As the PLA develops its weapon programs, its force projection capabilities play a central role in procurement decisionmaking. The complexity of modern warfare has increased in direct relation to the technological advances in weapon systems. The PLA’s strategy requires advanced weapon platforms, command and control, and high mobility. China’s technological capabilities lag far behind those of the United States and its allies in East Asia. An abundance of older Soviet-era equipment poses a significant challenge to the PLAN’s ability to conduct naval operations and potentially jeopardizes its success. Areas key to PLAN modernization include antisubmarine warfare (ASW), shipborne antiair warfare (AAW), and sustained naval operations. The Navy is addressing these concerns with domestic construction and purchases of state-of-the-art equipment, including Russian submarines, destroyers, and frigates. To improve the PLAN’s surface warfare capabilities, China has purchased two SOVREMENNYY Class destroyers from Russia, with two more on order. These provide an effective multipurpose ship capable of antiship, AAW, and ASW operations and are armed with 8 SS-N-22 supersonic antiship cruise missiles, 48 SA-N-7 SAMs, and 1 Ka- 27 ASW helicopter. China is producing a new class of larger, more capable destroyers. Four units have been launched and are the first Chinese craft to incorporate vertically launched missile systems, possibly the domestic HQ-9 SAM. By late 2003, construction of the new-class frigate had accelerated, with production at two shipyards. China is expanding and upgrading its submarine fleet with the purchase of four Russian KILO Class attack submarines (SSNs). The KILO is a major improvement for the PLAN over its noisy ROMEO Class submarines. In addition, the KILO may be armed with wake-homing torpedoes, which are very difficult to detect. China currently produces two domestically designed diesel-electric attack submarine classes: the MING and the SONG. The MING is modeled after the ROMEO, and newer construction units reportedly have improved sonar and navigation equipment. The SONG is a blend of domestic and Western technology and has several features that point to a major shift in diesel submarine design philosophy. China has launched the lead hull of its next-generation SSN, which is expected to enter service by 2005, with additional units to follow. A newclass nuclear-powered ballistic missile submarine, similar in design to the SSN, will have a missile bay to carry a new sea- launched ballistic missile. Amphibious Forces The PLA’s amphibious lift assets are insufficient to project force much beyond China’s shores. Most of the PLA’s landing craft are small and incapable of operating on the open ocean; its larger landing ships are old and in need of replacement. Since the mid-1990s, a number of newly designed landing ships have been under construction; however, the numbers currently believed to be under construction most likely are insufficient to support a sizable amphibious operation in the next 5 years. Although the PLA is assessed to lack lift assets for a conventional amphibious assault on Taiwan, Beijing continues to focus on modernizing and training PLA ground forces that are believed to have a potential mission against Taiwan. These forces in the Nanjing and Guangzhou Military Regions have been receiving upgraded amphibious armor and other vehicles, such as tanks and APCs, and the units acquiring this equipment regularly train with it. The upgraded amphibious Type 63A tank has a welded turret and rifled 105-mm tank gun. These tanks also have an image-stabilized fire-control system, satellite navigation system, and simple thermal imaging system. Type 63As ha ve been fielded to PLA and marine units in southeastern China. Introduction of the WMZ551B, an upgraded wheeled amphibious APC, to units in the sout heast reportedly will give these forces improved firepower, maneuverability, and reliability. PLA military planners recognize that logistic support for an amphibious operation is a complex and difficult component in campaign planning and ????ution, requiring coordination between all services and civilian agencies. An amphibious operation would place great demands on the military and civilian infrastructure. To ensure the success of such an operation, the PLA has identified a need for comprehensive, focused support. Logistic support would require providing sufficient transport assets for moving equipment and supplies to the ports of embarkation, conducting the sea crossing, supplying adequate ammunition and fuel to conduct operations, and repairing damaged equipment and facilities. Space Acquiring modern ISR systems remains critical to Beijing's military modernization program and supports the PLA’s local wars doctrine. It also most likely is one of the primary drivers behind Beijing’s space endeavo rs. Beijing’s ongoing space-based systems with potential military applications include: · Two new remote-sensing satellites known as Ziyuan-1 and -2, which is the Chinese name for the China-Brazil Earth Resources Satellite. Ziyuan-1B has a resolution of 19 meters and was launched in October 2003. The two Ziyuan-2 satellites probably also are capable of collecting digital imagery and have a sunsynchronous orbit with worldwide coverage and near-real-time download of imagery of most of eastern Asia to potential ground sites in eastern and central China. Beijing also tested a new film-based imagery satellite in late 2003. · China eventually can be expected to deploy advanced imagery, reconnaissance, and Earth resource systems with military applications. In the next decade, Beijing most likely will field radar and ocean surveillance satellites and also may deploy an improved film-based photoreconnaissance satellite. In the interim, China probably will exploit commercial SPOT, LANDSAT, RADARSAT, Ikonos, and various Russian satellite imagery systems · China also is interested in electronic intelligence (ELINT) or signals intelligence (SIGINT) reconnaissance satellites. Although all of these digital data systems probably will be able to transmit directly to ground sites, China may be developing a system of data relay satellites to support global coverage. Furthermore, Beijing has acquired mobile data reception equipment that could support more rapid data transmission to deployed military forces and units. · China is conducting extensive studies and is seeking foreign assistance on small satellites and has launched a number of them, including a scientific mission satellite, SJ-5 (Practice-5), in 1999 and an oceanographic research satellite, Haiyang (HY)-1 (Ocean-1), in 2002. At least two additional satellites in this series, HY-2 and -3, are expected. Other missions for satellites of this class that Beijing eventually may field include Earth observation, communications, and navigation. · China also is developing microsatellites--weighing less than 100 kilograms--for missions that include remote sensing and networks of electro-optical and radar satellites. A joint venture between China's Tsinghua University and Great Britain’s University of Surrey is building the “Tsinghua” system, a constellation of seven minisatellites with 50-meter-resolution remote-sensing payloads. Russia launched the first satellite in June 2000. Later satellites in the series probably will have improved resolution. Counterspace Developments China is expected to continue to enhance its satellite tracking and identification network. Beijing’s only current means of destroying or disabling a satellite, however, would be to launch a ballistic missile or space launch vehicle armed with a nuclear weapon. Such weapons, however, risk collateral damage to “friendly” space systems. According to press accounts, China can use probable low-energy lasers to “blind” the sensors on low- Earth-orbiting satellites, although whether this claim extends to actua l facilities is unclear. A Hong Kong newspaper article in January 2001 reported that China had developed and ground-tested and would soon begin space-testing an antisatellite (ASAT) system described as a “parasitic microsatellite.” This claim is being eva luated. Nonetheless, a number of countries, including China, are developing and proliferating microsatellite (10- to 100-kilogram mass) and nanosatellite (1- to 10-kilogram mass) technologies. Moreover, China clearly is working on, and plans to field, AS ATs. Additional press reports and activities at several laser institutes suggest Beijing most likely will continue to pursue development of ground-based laser ASAT weapons and radars. China's current level of interest in laser technology suggests that it is reasonable to assume Beijing eventually could develop a weapon to destroy satellites. Command, Control, Communications, and Computers (C4) China's current leaders have consistently recognized the importance of modernizing the military's C4I systems. Former Minister of Electronics Industry, former CCP General Secretary, and current chairman of the Central Military Commission Jiang Zemin has emphasized that “electronics is of crucial importance to economic construction and national defense communications.” In summarizing the experiences of the Gulf War after 1991, Jiang Zemin went further, asserting that “military electronics has a bearing on national security” and “must be given first place.” To this end, Beijing is continuing development of a joint battle management system that the entire PLA will use for strategic, campaign, and tactical planning and operations. Part of this effort is upgrading a previously existing extensive network of hardened underground shelters and command and control facilities for both military and civilian leaders. Fear of a possible war with the former Soviet Union in the 1960s and 1970s prompted Beijing to expend considerable resources constructing national-level command posts, civil defense facilities, and associated communications. These facilities are intended to ensure survival of China's leadership and provide a refuge from which it can maintain control over the country's military forces. Renewed emphasis on improving these facilities most likely is to improve the chances of leadership survival in modern warfare. Both civilian and military communication networks support China’s national command and control facilities and provide communications to all levels of the military and civilian leadership. The military communication network provides backbone support to China's national military command and data network. PLA national-level command, control, and communications (C3) is carried over multiple transmission systems, to include coaxial and fiber-optic cable, satellite communications, microwave radio-relay, and long-range high- frequency radio. China's communication networks, both civil and military, would be capable of supporting a wide range of military operations. The General Staff Department Communications Department (Zong canmoubu/tongxin bu) most likely leads C4I modernization in the PLA. This unit is the PLA’s signal corps, responsible for building, operating, and protecting the military's communication infrastructure. In a 1999 article in Chinese Military Science, former Fourth Subdepartment Director Maj Gen Yuan Banggen identified network building, network operation, and communication security as the key roles for units under his command. A critical element of the PLA’s C4I modernization effort is the China Electronic Systems Engineering Corporation (CESEC), the commercial arm of the General Staff Department Communications Department. The CESEC is the key to PLA telecommunications, with interests ranging from mobile communications to secure telephone lines, computer networks, encryption, microwaves, computer applications, and dedicated military C4I systems. The CESEC is largely responsible for designing, integrating, and operating the PLA’s telecommunication and computer networks. It develops software applications and is closely affiliated with critical General Staff Department research institutes that specialize in C4I, microwave, and encryption. More important, the CESEC and its affiliated subsidiaries are also well connected to foreign telecommunication companies, providing a window for acquiring advanced information security equipment. Intelligence, Surveillance, and Reconnaissance Acquisition of modern ISR systems remains a critical aspect of Beijing's military modernization. China is developing its ISR capabilities based on domestic components, supplemented by foreign technology acquisition and procurement of complete foreign systems. PLA procurement of new space systems, AEW aircraft, long-range UAVs, and over-the- horizon radar will enhance its ability to detect, monitor, and target naval activity in the western Pacific Ocean. It appears, from writings on PLA exercises, that that this system currently lacks integration and that a fused, efficient ISR capability will not be achieved for many years. Exploitatio n of space and acquisition of related technologies remain high priorities in Beijing’s ISR improvements. China is placing major emphasis on improving space-based reconnaissance and surveillance, including electro-optical, synthetic-aperture radar, and other satellite reconnaissance systems. These systems, when fully deployed, are expected to provide a regional, and potentially hemispheric, continuous surveillance capability. China has begun to embrace new satellite architecture emphasizing common satellite buses. This approach to satellite construction is based on use of a standard, versatile satellite bus module, with minor modifications to accommodate various payloads. In addition to domestic development, China probably will continue to use commercial satellite imagery and may seek to join an international consortium-owned constellation. China is cooperating with a number of countries, including Russia, Ukraine, Brazil, the United Kingdom, France, Germany, and Italy, to advance its objectives in space. China’s airborne ISR program has placed significant emphasis on UAVs. China’s armed forces have operated the Chang Hong (CH-1) long-range, air-launched autonomous reconnaissance drone since the 1980s. China developed the CH-1 by reverse-engineering U.S. Firebee reconnaissance drones recovered during the Vietnam War. An upgraded version of the system was displayed at the 2000 Zhuhai air show and is being offered for export. A PRC aviation periodical reported that the CH-1 can carry a TV, daylight still, or infrared camera. It most likely is not equipped with a data link, which would allow remote-controlled operation, nor is it capable of providing real-time payload feedback to the remote operator. China’s armed forces also operate other UAVs, primarily for battlefield reconnaissance or electronic warfare. China also is pursuing naval ISR programs that include the Y-8 AEW aircraft and efforts to procure or produce an AWACS. These platforms eventually will complement China’s other ISR platforms, such as the Tu-154 multirole special mission aircraft equipped for ELINT collection missions and possibly electronic warfare. The PLAAF reportedly also has several aircraft–both fighters and bombers–capable of performing an imagery reconnaissance function. China may have developed passive acoustic sensors for use in coastal waters and also may have at least one underwater acoustic range. This range could be used to track torpedoes during training exercises. Because of China's interest in ASW, development and deployment of additional underwater sensors is probable in the next 5-10 years and will expand through 2020. Some of these future systems may be installed as far offshore as the edge of the continental shelf. Passive sensors would provide only a few miles of coverage against quiet submarines but could detect merchant shipping and noisy combatants at greater distances. Ground-based ISR research and development is focused on over-the-horizon radar (OTH) radar. China may have as many as three OTH skywave radar systems to track maritime movements in China’s contiguous seas and most likely to serve as part of an effort to develop the capability to track and target U.S. aircraft carriers. These systems could be used in an early warning capacity. China also may have deployed at least one surfacewave OTH radar. Information Operations China is experiencing a rapid buildup of its information technology capabilities. The Chinese government effectively uses market access and regulations to force major foreign information technology companies to transfer technology, share know- how, and, more recently, open research and development labs in China. Many of the Chinese companies in these joint ventures are affiliated with state research institutes under the Ministry of Information Industry or the PLA’s General Staff Department. As a result of these trends, China is acquiring the personnel and technology bases for a credible computer network operations capability. However, highly skilled information technology personnel may seek to avoid government service or cooperation with the government sector, preferring instead the economic incentives of the private sector. In addition, poor information technology management skills and a corporate culture that does not emphasize innovation are hindering development of advanced technology capabilities and programs. Electronic Warfare Electronic warfare (EW) is an important aspect of the PLA’s combat operations and is viewed as crucial to achieving information dominance in the battlespace. The PLA is believed to be able to conduct both defensive and offensive EW operations. Basic objectives of an electronic attack campaign are to conceal PLA operational preparations, weaken enemy air defense early warning, and paralyze or disrupt enemy integrated air defense systems. Chinese electronic warfare operational concepts emphasize concealing the activities and disposition of PLA forces and misleading the enemy. Electronic attack can deceive or desensitize enemy battle commanders through insertion of spurious radar tracks or blot out entire avenues of approach. China’s EW modernization program consists of foreign technology procurement, reverseengineering, and parallel domestic research and development programs. The Chinese intend to accelerate modernization through technological leapfrogging. Beijing may bypass phases of equipment development by purchasing commercial-off-the-shelf technology. However, China does not want to become reliant on importing EW systems. Domestic equipment has been manufactured and offered for export, possibly to fund further research and development. EW research programs reportedly receive high- level visibility and support from Communist Party senior leaders. Although the capabilities of most deployed EW equipment are limited by Western standards, new designs displayed at air and trade shows display marked improvement over those shown just a few years ago. Furthermore, PLA communication troops increasingly engage in exercises involving simulated EW attacks against notiona l targets. Nevertheless, while technology improvements are obvious, even the latest Chinese EW equipment remains simple by modern standards. Military researchers in the PLA also have repeatedly emphasized that EW and information warfare are vital for victory in future conflicts. Both military and civilian sectors play active and important roles in China's military electronics program. In addition to a range of research and development institutes in all three services of the PLA, many civilian research organizations, universities, and factories are involved in projects related to developing electronic equipment for military purposes. The China Electronic Import and Export Company acts as a window company for the Chinese military electronic industry to promote its products to foreign countries, with some notable successes. V. PRC FORCE MODERNIZATION AND SECURITY IN THE TAIWAN STRAIT Strategies and Options for China’s Use of Force in the Taiwan Strait China’s recent economic efforts have more than made up for the self-imposed catastrophes of the Mao era and are diminishing the advantages enjoyed by Taiwan and its economic successes since the 1960s. Chinese diplomatic pressure has left the island bereft of allies willing to help defend it from China. Beijing’s military modernization program is eroding the spatial, temporal, and distance challenges that historically inhibited using force against Taiwan. After close to 20 years of spectacular economic growth in China, Beijing’s diplomatic successes, and steady improvement in the PLA’s military capabilities, the cross-Strait balance of power is steadily shifting in China’s favor. While continuing to declare its pursuit of a peaceful unification, Beijing has refused to renounce use of force against Taiwan and has listed several circumstances under which it would take up arms against the island. These include a formal declaration of independence by Taipei, foreign intervention in Taiwan's internal affairs, indefinite delays in resumption of cross-Strait dialogue, Taiwan's acquisition of nuclear weapons, and internal unrest on Taiwan. These statements, and China’s ambitious military modernization program, may reflect an increasing willingness to consider use of force to achieve unification. While internal debate over how to respond to Taiwan has ebbed and flowed in recent years, Beijing still has a political strategy for unification with a military component, not a military strategy with a political component. Its longstanding approach to resolving the cross-Strait standoff is multifaceted, integrating political, economic, cultural, and military strategies to exert all of its national power to dissuade Taiwan against ever crossing any red lines and ultimately to accept Beijing’s terms. Since Chen’s March 2004 re-election, Beijing likely has launched an internal debate to assess whether its previous strategy of isolating him by expanding contacts with political and economic elites on Taiwan – who traditionally have held more favorable views toward unification – needs to be discarded in favor of a different mix of political, economic, and diplomatic carrots and sticks. What does not appear to be in question among China’s senior leaders is their belief in the need to maintain a credible potential to deliver swift and decisive military force against |