ANNUAL REPORT

VIII
Page
Military Modernization: Implications for Developing an Expeditionary Capability
........................................................................................................... 263
Joint Training and Operational Deployments: Lessons Learned for Developing
China’s Expeditionary Capability ..................................................... 269
Implications for the United States and U.S. Allies and Partners ................ 273
Conclusions ....................................................................................................... 278
Recommendations ............................................................................................. 279
Section 3: China’s Intelligence Services and Espionage Threats to the
United States .................................................................................................... 289
Introduction ...................................................................................................... 289
China’s Intelligence Services ........................................................................... 289
China’s Intelligence Collection Capabilities ................................................... 292
China’s Intelligence Process ............................................................................ 293
China’s Intelligence Collection Operations against U.S. National Security
Entities .......................................................................................................... 294
U.S. Responses to Chinese Espionage ............................................................ 300
Implications for U.S. National Security ......................................................... 302
Conclusions ....................................................................................................... 303
Recommendations ............................................................................................. 304
Chapter 3: China and the World ..................................................................... 313
Section 1: China and South Asia ........................................................................ 313
Introduction ...................................................................................................... 313
China’s Objectives in South Asia .................................................................... 313
China-India Relations ...................................................................................... 323
China-Pakistan Relations ................................................................................ 333
Implications for the United States .................................................................. 339
Conclusions ....................................................................................................... 344
Section 2: China and Taiwan .............................................................................. 356
Introduction ...................................................................................................... 356
Cross-Strait Relations ...................................................................................... 356
Taiwan’s International Engagement ............................................................... 369
Taiwan Military and Security Issues .............................................................. 375
U.S.-Taiwan Relations ..................................................................................... 382
Implications for the United States .................................................................. 388
Conclusions ....................................................................................................... 389
Recommendations ............................................................................................. 391
Section 3: China and Hong Kong ........................................................................ 404
Introduction ...................................................................................................... 404
Hong Kong’s Changing Political Landscape ................................................... 404
Disappearance of Hong Kong Booksellers ...................................................... 409
Declining Freedom of Expression in Hong Kong ........................................... 413
Hong Kong’s Economy and its Economic Ties with Mainland China .......... 418
Hong Kong’s Security Ties with Mainland China ......................................... 422
Implications for Taiwan of Beijing’s Control over Hong Kong’s Political
Development .................................................................................................. 425
Implications for the United States .................................................................. 425
Conclusions ....................................................................................................... 427
Recommendations ............................................................................................. 429
Section 4: China and North Korea ..................................................................... 437
Introduction ...................................................................................................... 437
Overview of Contemporary China-North Korea Relations ............................ 438
Recent Developments in China-North Korea Relations ................................ 439
Evolution in China’s Policies and Perceptions Regarding North Korea ...... 449
Differences between China and the United States on North Korea Policy . 458
Implications for the United States .................................................................. 460
Conclusions ....................................................................................................... 461
Recommendations ............................................................................................. 463
Chapter 4: China and the U.S. Rebalance to Asia ...................................... 475
Introduction ...................................................................................................... 475
The U.S. Rebalance to Asia Strategy .............................................................. 475
China’s Regional Activities since the Rebalance ............................................ 485
Conclusions ....................................................................................................... 495