SUBMITTED THE 2016 REPORT TO CONGRESS
ON MILITARY AND SECURITY DEVELOPMENTS
INVOLVING THE PEOPLE'S REPUBLIC OF CHINA.
THIS ANNUAL REPORT HIGHLIGHTS CHINA'S
DEFENSE STRATEGY AND MILITARY DEVELOPMENTS.
THE REPORT IS INTENDED TO BE FACTUAL,
DESCRIPTIVE AND ANALYTICAL. LET THE FACTS SPEAK FOR
THEMSELVES. THE REPORT DESCRIBES HOW CHINA
CONTINUES TO INVEST, ANTI ACCESS AREA
DENIAL AND EMERGING DOMAINS, CYBERSPACE, SPACE AND
ELECTROMAGNETIC SPECTRUM.
CHINA CONTINUES TO PREPARE FOR POTENTIAL CONFLICT IN THE
TAIWAN STRAIT BUT MISSIONS IN THE EAST AND
SOUTH CHINA SEAS AND KOREAN PENINSULA ARE
EQUALLY IMPORTANT TO THE P.L.A.
CHINA'S LEADERS SEEM COMMITTED TO
GROWTH FOR THE FORESEEABLE FUTURE
EVEN AS CHINA'S ECONOMIC GROWTH DECELERATES.
IT ANNOUNCED IT'S BUDGET WILL GROW TO
$144 BILLION. FOR 2006-2015, CHINA DISCLOSED
MILITARY 9.8% GREW A YEAR IN
INFLATION-ADJUSTED TERMS.
CHINA'S PUBLISHED MILITARY BUDGET, R AND D
AND PROCUREMENT OF WEAPONS AND EQUIPMENT.
THE TRUE EXPENDITURE, D.O.D. ESTIMATES IN
TERMS OF TOTAL MILITARY RELATED SPENDING FOR 2015 EXCEEDED $180
BILLION IN 2015.
AS A RESULT THE P.L.A. CONTINUES TO MAKE
STRIDES. FOR INSTANCE, CHINA'S MILITARY
PARADE LAST YEAR, CHINA UNVEILED DF 26
MISSILE, CAPABLE OF PURSUING GROUND
STRIKES IN THE ASIA PACIFIC.
BEYOND THESE ONGOING LONG TERM TRENDS, THE PROGRAM ENTERED A
NEW PHASE IN 2015.
I WOULD LIKE TO HIGHLIGHT THREE KEY
SECURITY DEVELOPMENTS. THE FIRST IS MARITIME
ACTIVITIES. 2015 CHINA USED ASSERTIVE
TACTICS TO ASSERT IT'S CLAIMS IN THE SOUTH
CHINA SEA, RECOVERING VAST ACREAGE ON
EXISTING OUT POSTS AND CONSTRUCTING
MILITARY FACILITIES.
CHINA'S LEADERSHIP DEMONSTRATED WILLINGNESS TO TOLERATE HIGH
LEVELS OF TENSION IN PURSUIT OF IT'S
MARITIME CLAIM. WITHOUT JEOPARDIZING THE PEACE
FOR ECONOMIC DEVELOPMENT WHICH HAS
MAINTAINED CHINA'S COMMUNIST PARTY GRIP
ON POWER. CHINA'S LEADERS ARE LEVERAGING
THE COUNTRY'S POWER TO EXPAND IT'S
INTERNATIONAL INFLUENCE AND MILITARY
FOOTPRINT OVERSEAS. THE MOST PROMINENT EXAMPLE,
EXPANDING AMBITION, NOVEMBER ANNOUNCEMENT
ESTABLISHING A MILITARY FACILITY IN DJIBOUTI.
BIG STEP FORWARD FOR P.L.A. THE THIRD TREND IS SWEEPING
REFORMS TO MAKE A MORE CAPABLE AND LOYAL
P.L.A. PRESIDENT XI ANNOUNCED
REPLACING THE OLD MILITARY REGIONS WITH NEW
GEOGRAPHIC COMMANDS AND SEEK TO STRENGTHEN CHINA COMMUNIST
PARTY CONTROL OVER THE P.L.A. BY
ESTABLISHING NEW BODIES TO OVER SEA THE
MILITARY. THE UNITED STATES WILL SEEK
COOPERATION IN AREAS OF MUTUAL BENEFIT AND
MANAGE COMPETITION WITH CHINA FROM A
POSITION OF STRENGTH.
REDUCING THE RISK OF MISUNDERSTANDING
AND MISCALCULATION. AS UNITED STATES BUILDS
STRONGER FOUNDATION FOR MILITARY TO
MILITARY WITH CHINA, WE WILL CONTINUE TO
MONITOR THEIR EVOLVING MILITARY STRATEGY,
DOCTRINE AND DEVELOPMENT.
AND ENCOURAGE THEM TO BE MORE TRANSPARENT.
OUR APPROACH FOCUSES ON REDUCING RISK,
EXPANDING COMMON GROUND AND MAINTAINING OUR MILITARY
SUPERIORITY. TO REDUCE RISK THE D.O.D. AND
P.L.A. EXPANDED UPON THE HISTORICAL
UNDERSTANDINGS IN 2014 WHEN THEN
SECRETARY OF DEFENSE CHUCK HAGEL AND
MINISTER OF DEFENSE IN CHINA SIGNED TWO
MEASURES. FIRST RULES OF BEHAVIOR FOR
SAFETY OF AIR AND MARITIME ENCOUNTERS
M.O.U. AND SECOND NOTIFICATION OF
MILITARY ACTIVITIES M.O.U.
2015 WE EXPANDED WITH ADVANCES AIR TO
AIR INTERACTIONS AND CRISIS COMMUNICATIONS.
THESE CONFIDENCE-BUILDING MEASURES ARE
ENHANCED EFFORTS TO REDUCE RISK AND
MISUNDERSTANDING. WE INCLUDED AS APPENDIXES IN
THE REPORT. PROGRESS IN DEVELOPING THE
CAPACITY TO COOPERATE.
IN DELIVERY OF INTERNATIONAL PUBLIC
GOODS, INCLUDING HUMANITARIAN DISASTER,
PEACEKEEPING OPERATIONS, SEARCH AND
RESCUE AND MILITARY MEDICINE. IN SHORT, THIS REPORT
ILLUSTRATES THE COMPLEXITY OF THE ISSUES AT
STAKE. DESPITE, THIS REPORT DOCUMENTS
THE KIND OF MILITARY CHINA IS BUILDING.
WE HOPE IT CONTRIBUTES TO THE PUBLIC'S
UNDERSTANDING OF THE P.L.A. AND WITH
THAT I WOULD BE HAPPY TO TAKE A FEW
QUESTIONS. >> THANK YOU.
DAVID BRUNSTROM FROM REUTERS. I WAS WONDERING IF YOU COULD
BRING US UP- TO-DATE ON INFRASTRUCTURE
DEVELOPMENT. THE REPORT MENTIONS THAT THE
RECLAMATION HAS BEEN COMPLETED. BUT IN TERMS OF THE BUILDING OF
AIRSTRIPS, HAVE THEY BEEN COMPLETED YET?
AND JUST ON THE DEFENSE SPENDING I
UNDERSTAND THE FIGURE ANNOUNCED IN
MARCH FOR THIS YEAR WAS ACTUALLY A
SLOW DOWN IN GROWTH TO THE FIRST TIME IN
SOME TIME. DO YOU EXPECT THAT TREND TO
CONTINUE? >> IN TERMS OF, YOU ASKED ABOUT
CHINA'S INTENTION OF FURTHER
MILITARIATION. FOR THAT I WOULD HAVE TO REFER
YOU TO THE CHINESE GOVERNMENT IN TERMS
OF THEIR OVERALL OBJECTIVES.
WE HAVE WATCHED THIS VERY CLOSELY.
WE HAVE SEEN THEM CONDUCT CONSTRUCTION AND RECLAMATION
AND WE HAVE BEEN WATCHING THIS ISSUE
VERY CLOSELY.
WE ARE AWARE OF THESE ISSUES. AND WE SEE THEM AS OUT OF STEP
WITH THE REST OF THE REGION TO
PEACEFULLY MANAGE AND RESOLVE THESE
DISPUTES. BUT IN TERMS OF WHERE THEY GO
FROM HERE, WHERE THE NEXT STEPS ARE,
I WOULD HAVE TO REFER YOU TO THE
CHINESE GOVERNMENT.
>> CAN YOU BRING US UP-TO-DATE FROM THE
PERIOD OF THE REPORT TO TODAY, AS TO
WHERE THEY HAVE GOT IN TERMS OF BUILDING, FINISHING AIRSTRIPS?
THE REPORT MENTIONED THREE AIRSTRIPS
AND SAYS THEY ARE BEING COMPLETED BUT
ARE THEY NOW COMPLETE, FOR EXAMPLE?
>> WELL THE TRENDS OF WHAT WE HAVE
SEEN IN TERMS OF CONSTRUCTION HAVE
CONTINUED THROUGH THE LIFETIME OF THIS
REPORT. I DON'T HAVE ANYTHING SPECIFIC
FOR YOU RIGHT NOW.
BUT THE TRENDS WE SAW IN 2015 IN TERMS OF
MILITARY CONSTRUCTION HAVE CONTINUED
FOR A BIT. BUT IN TERMS OF NUMBER OF
CERTAIN ASSETS, I DON'T HAVE ANYTHING
SPECIFIC FOR YOU.
>> TARA WITH STARS AND STRIPES. CHINA SAID IT'S THE U.S.
FREEDOM OF NAVIGATION OPERATIONS THAT ARE
INSPIRING IT TO FURTHER BOLSTER IT'S
DEFENSES OF THESE RECLAIMED ISLANDS.
I WAS WONDERING YOUR THOUGHTS ABOUT
THAT. AND IN GENERAL WITH THIS
REPORT, DO YOU ANTICIPATE THAT HAVING SOME
ACTUAL NUMBERS ABOUT WHAT CHINA IS
DEVELOPING AND SPENDING WILL BE SHAPING
FUTURE STRATEGIC DIALOGUE SUCH AS
UPCOMING SHANGRI-LA DIALOGUES.
>> THESE ARE NOTHING NEW. WE HAVE BEEN CONDUCTING FREEDOM
OF NAVIGATION OPERATIONS AROUND
THE UNITED STATES AND OPERATING
ACCORDING TO INTERNATIONAL LAW FOR A LOT
LONGER THAN THAT.
THESE OPERATIONS ARE INTENDED TO
ACKNOWLEDGE AND DEMONSTRATE THAT WE
DON'T ABIDE BY EXCESSIVE MARITIME PLANS
TO COUNTER TO INTERNATIONAL LAW. THEY DEMONSTRATE OUR COMMITMENT
TO UPHOLD INTERNATIONAL LAW.
AS THE PRESIDENT SAID, AS THE SECRETARY
SAID THAT WE ARE GOING TO FLY, SAIL AND
OPERATE WHATEVER THEY ALLOW. SO THERE'S NOTHING NEW IN TERMS
OF THESE OPERATIONS.
SO WHY CHINA IS DEVELOPING THESE
CAPABILITIES IN THE SOUTH CHINA SEA, I THINK
MAY COME FROM A WIDE VARIETY OF OTHER
FACTORS AND I WOULD HAVE TO REFER YOU
TO THEIR GOVERNMENT. THE FACT WE HAVE BEEN DOING
THESE OPERATIONS FOR DECADES SUGGEST
TO ME THOSE SPECIFIC OPERATIONS ARE
NOT THE CAUSE.
>> THEN ON SHANGRI-LA? >> THESE ISSUES.
I THINK THE DISCUSSIONS WE HAD, NOT
SPECIFIC TO THE UPCOMING DIALOGUES BUT
DISCUSSIONS THAT WE HAVE BEEN HAVING
ACROSS THE REGION FOR SEVERAL YEARS,
OFTEN CENTER AROUND ISSUES RELATED TO
THE SOUTH CHINA SEA. AND I THINK, AGAIN, THIS IS THE
REASON WE ARE TALKING ABOUT THESE THINGS
IS NOT BECAUSE OF THE UNITED STATES
CONTINUING TO OPERATE THE WAY WE ALWAYS
HAVE. BUT RATHER BECAUSE OF NEW
THINGS. I WOULD ARGUE NEW THINGS THAT
CHINA HAS DONE IN TERMS OF RECLAMATION IN
TERMS OF CONSTRUCTION AND
MILITARIZATION. THAT'S DRIVING CONCERNS AROUND
THE REGION.
AND I THINK THAT'S WHAT'S NEW IN DRIVING
THESE DISCUSSIONS. I CAN'T PREDICT WHAT
CONVERSATIONS MAY HAPPEN IN UPCOMING DIALOGUES.
BUT I CAN SAY IN PAST DIALOGUES THE PAST
CHINA SEA HAS BEEN AN ISSUE OF DISCUSSION.
>> YOU REFERRED TO CHINA USING COERCIVE
TACTICS. CAN YOU EXPLAIN WHAT THAT IS?
WHAT ARE YOU REFERRING TO THERE? >> SURE, WE TALK ABOUT IT A BIT
IN THE REPORT.
WHAT WE SEE CHINA'S FORCES, I SHOULD SAY
USING TACTICS SUCH AS RECLAMATION.
AT TIMES SOME OF THEIR FISHING VESSELS
AND COASTGUARDS ACTING UNPROFESSIONAL
OR SORT OF MANNERS IN THE VICINITY OF THE
MILITARY FORCES, FISHING VESSELS OF
OTHER COUNTRIES IN A WAY THAT'S DESIGNED TO ATTEMPT TO
ESTABLISH A DEGREE OF CONTROL AROUND
DISPUTED FEATURES.
AS WE NOTE IN THE REPORT, IT SEEMS TO US
TO OUTSIDE OBSERVERS THESE ACTIVITIES
ARE DESIGNED TO STAY BELOW THE THRESHOLD OF CONFLICT BUT
GRADUALLY DEMONSTRATE AND ASSERT CLAIMS
THAT OTHER COUNTRIES DISPUTE.
>> A COUPLE QUESTIONS NOT RELATED TO
THE SOUTH CHINA SEA. FOR YEARS THIS REPORT HAS BEEN
SEEN AS A BENCHMARK BETWEEN CHINA AND
TAIWAN'S MILITARY STRENGTH.
YOU MENTIONED THEY HAVE BEEN SPENDING
9% OR SO AND MORE FOR THE LAST DECADE.
HAS TAIWAN KEPT THE PACE. IT'S BEEN RELATIVELY FLAT WHERE
CHINA HAS EXPONENTIALLY INCREASED.
WHAT IS YOUR TAKE THERE. IS THE U.S. NOT PRESSURE BUT
ENCOURAGE THE NEW REGIME IN TAIWAN TO
INCREASE IT'S DEFENSE SPENDING?
>> SURE. WE HAVE BEEN MONITORING THE
CROSS STRAIT MILITARY BOUNDS FOR A
LONG TIME AS DEMONSTRATED BY THE LONG
HISTORY OF THESE REPORTS.
AND WE CONTINUE TO MONITOR THE SITUATION.
AND WE HAVE ENCOURAGED TAIWAN TO
CONTINUE TO INCREASE IT'S DEFENSE
SPENDING AND TO INVEST IN A SYMMETRIC
AND INNOVATIVE CAPABILITIES AND CONCEPTS.
WE CONCENTRATE ON ASYMMETRY BECAUSE
OF THE OBVIOUS AND UNAVOIDABLE IMBALANCE OF THE TWO SIDES.
BECAUSE OF THAT WE BELIEVE TAIWAN
NEEDS TO INCREASE IT'S SPENDING BUT ALSO
NEEDS TO MAKE INVESTMENTS IN ASYMMETRIC CAPABILITIES THAT
WOULD ACCOUNT FOR THAT NATURAL
DISPARITY IN SIZE.
>> DO THEY PAY FOR THOSE OUT OF IT'S OWN
BUDGET AS OPPOSED TO MILITARY SPENDING
FROM THE UNITED STATES AND STUFF LIKE
THAT? >> I'M NOT GOING TO GET INTO
THE FINANCING OF THESE THINGS.
TAIWAN DOES SPEND FUNDS ON ITS DEFENSE.
AND WE DO IN ACCORDANCE WITH THE
TAIWAN'S RELATIONS ACT MAKE NECESSARY
FOR IT'S OWN SELF DEFENSE. BUT WE BELIEVE THEY NEED TO
SPEND MORE ON THESE CAPABILITIES IN ORDER
TO MAINTAIN THE ABILITY TO DEFEND
THEMSELVES. >> FOR THE LAST 3-4 YEARS THE
PENTAGON PARTICIPATED THAT THE CHINESE
WOULD GET NUCLEAR DETERRENT CONTROLS WITH
CLASS SUBMARINES.
WE ANTICIPATE BY THE END OF THE YEAR
NUCLEAR DETERRENT MISSIONS WILL START.
AND THEY HAVEN'T STARTED YET. CAN YOU GIVE SOME INSIGHT INTO
WHY THEY HAVEN'T STARTED?
IS IT MORE LIKELY BY THE END OF THIS YEAR
THAN PAST YEARS THEY WILL WATCH WITH
THE J.L.2 NUCLEAR MISSILES? >> I REALLY CAN'T BEGIN TO
SPECULATE AS TO WHY THIS TREND CONTINUES TO
SUSTAIN OVER THE YEARS.
I CAN'T DEFINITIVELY SAY THAT THEY HAVE
CONDUCTED A DETERRENCE PATROL YET.
NOR CAN I COMMENT ON WHAT CHINA MAY
CONSIDER A DETERRENCE PATROL. I THINK IT'S GOOD TO DEFER TO
THEM. BUT WE HAVE NOT SEEN, WE HAVE
NOT YET SEEN THEM CONDUCT WITH THIS
SPECIFIC PLATFORM.
WE HAVE NOT SEEN THEM CONDUCT WHAT
WE WOULD CONSIDER TO BE A DETERRENCE
PATROL BUT AS TO WHY, I REALLY CAN'T
SPECULATE. I WOULD REFER YOU TO THEM FOR
THAT. I'M NOT A SUBMARINER OR NAVY
SPECIALIST. I CAN'T REALLY GET INTO THE
SPECIFICS OF IT. BUT WE HAVEN'T SEEN YET, AS WE
CAN TELL BUT REALLY IN TERMS OF WHY AND
WHAT'S GOING ON UNDERNEATH THIS ISSUE
I WOULD HAVE TO REFER YOU TO THEM.
>> ENDURANCE PATROL. HOW SIGNIFICANT WILL THAT BE
FOR THE REGION, ON THE MESSAGE OF
CHINESE CAPABILITY?
>> I REALLY CAN'T GET INTO HYPOTHETICALS
LIKE THAT. >> I WANT TO DRILL DOWN A
LITTLE IN YOUR OPENING REMARKS, HOW IT WAS
$180 BILLION IN 2015 A MUCH HIGHER NUMBER
THAN THEY DISCLOSED.
THIS YEAR THEY DISCLOSED A BUDGET OF
ABOUT $135 BILLION. I'M WONDERING HOW DO YOU SEE
THAT NUMBER IN ACTUALITY.
REUTERS AND OTHER OUTLETS HAVE DESCRIBED THAT AS A DECLINE IN
SPENDING. BUT OBVIOUSLY THAT DOESN'T
INCLUDE THE AREAS YOU MENTIONED BEFORE.
IS THAT REALLY A DECLINE? AND AGAIN WHERE DO YOU SEE THE
NUMBER THIS YEAR?
>> IT'S A DECLINE IN GROWTH. OVER TIME, AS I MENTIONED THE
BUDGET HAS RAISED TO ROUGHLY AN AVERAGE OF
9.6% PER YEAR.
AND THIS TIME I THINK 7%. IN TERMS OF THEIR ANNUAL
OFFICIAL ANNOUNCEMENTS.
AND IN TERMS OF WHY IT MAY BE SLOWING
DOWN, I REALLY COULDN'T SPECULATE.
I THINK IT'S A GOOD QUESTION FOR THEM.
WHAT WE SEE CONTRIBUTING TO AN AGGREGATE, WHAT WE SEE THIS
RESULTING IN IN AGGREGATE IS INCREASINGLY
CAPABLE AND MODERN FIGHTING FORCE
ACROSS ALL DOMAINS OF COMBAT CAPABILITY.
SO WE SEE THEM FOR A LONG TIME AS
DOCUMENTED IN THIS SERIES OF REPORTS
MAKING SIGNIFICANT INVESTMENTS IN
MILITARY CAPABILITIES AND WE SEE THEM
NOW REAPING THE BENEFITS OF SOME OF
THOSE BENEFITS WITH INCREASINGLY
CAPABLE AND MODERN SYSTEMS. >> THE NUMBER FOR 2016
INCLUDING THOSE AREAS THAT YOU SAID WERE
EXCLUDED? >> YEAH.
LET ME FIND. IT'S IN THE REPORT.
I LOOKED AT IT BEFORE I CAME UP. I BELIEVE OUR ESTIMATE WAS IT
EXCEEDED $180 BILLION IN 2015.
IN '16, WE HAVEN'T MADE THAT ESTIMATE YET.
AND I THINK EVERY REPORT, AS FAR AS I
RECALL IS ABOUT THE YEAR PREVIOUS.
SO I DON'T HAVE AN UPDATE FOR YOU IN
TERMS OF WHAT YOU THINK THEY ARE
SPENDING IN 2016. >> CAN I JUST DRILL DOWN A
LITTLE WHAT DAVID HAD ASKED BEFORE ABOUT
THE BUILDING.
FIRST, THE REPORT SEEMED TO FOCUS ON --
CAN YOU PROVIDE ASSESSMENT ON THE
PARACEL ISLANDS, WOODY ISLANDS, BOTH IN
ACREAGE AS WELL AS YOUR ASSESSMENT OF
THE INCREASE IN EITHER THE NUMBER OR
SCOPE OF FACILITY. THE REPORT DOESN'T REALLY GET
INTO SOME ASSESSMENT OF THE SCOPE OF THE
FACILITY. >> IN TERMS OF SPECIFICS AND
LIKE ACREAGE I WILL HAVE TO GET BACK TO YOU.
I DON'T HAVE THE NUMBER IN FRONT OF ME.
I CAN SAY THAT WE HAVE SEEN THAT CHINA
CONTINUED TO CONDUCT RECLAMATION AS
WELL AS CONSTRUCTION IN THE PARACELS.
BUT I DON'T HAVE ANYTHING MORE SPECIFIC
THAN THAT WITH ME BUT I CAN GET MORE
INFORMATION TO YOU. >> AS FAR AS SPLATLING CAN YOU
GIVE ESTIMATE OF SCOPE OF INCREASE
IN THE FACILITIES THEY HAVE BEEN
BUILDING? >> THE REPORT DOESN'T COMMENT
ON SPECIFIC MILITARY SYSTEMS.
ALTHOUGH WE ARE AWARE OF REPORTS OF
ARTILLERY AND OTHER SORTS OF SYSTEMS.
I WOULD ENCOURAGE YOU TO TAKE A LOOK AT
THE REPORT. >> I SAW THE MAP.
I WAS TRYING TO FIGURE OUT IF THERE'S
ANYWAY YOU COULD VERBALLY SAY THEY
TRIPLED, QUADRUPLED, WENT FROM TENS TO
HUNDREDS. IS THERE ANY WAY.
DON'T YOU HAVE ANY SORT OF NUMERICAL?
AS OPPOSED TO JUST LOOKING AT THE
PICTURES ON THE MAP? >> I DON'T HAVE ANY SPECIFICS
FOR YOU RIGHT NOW.
>> (INAUDIBLE) ON PAGE 57, YOUR REPORT SAYS IN
THERE NUCLEAR, ADDITIONAL DRIVER
BEHIND CHINA'S NUCLEAR FORCE MODERN ADDITION,
BUT DON'T YOU THINK THEY ARE MORE
DRIVEN BY U.S. THAN INDIA?
>> I REALLY COULDN'T SPECULATE AS TO
WHAT WAY IS GREATER IN THE MINDS OF
CHINESE MILITARY PLANNERS. THAT BEING SAID, I BELIEVE IF
YOU LOOK AT THE REPORT, IT REFERS TO THAT
SPECIFIC SECTION REFERS TO THE UNITED
STATES THAN RUSSIA AND THEN INDIA.
I WOULD REFER IN TERMS OF GIVING AN
AUTHORITATIVE ANSWER WHAT DRIVES
CHINESE THINKING ON THESE ISSUES.
I WOULD HAVE TO REFER YOU TO THE
GOVERNMENT. THIS IS OUR BEST UNDERSTANDING
BASED ON AUTHORITATIVE STATEMENTS AND
RIDINGS OF MILITARY SCHOLARS.
>> AND THE CHINESE SUBMITTING ACTIVITIES
IN THE INDIAN OCEAN HAS INCREASED.
AND REPORTS ABOUT U.S. AND INDIA
PLANNING TO JOIN MODERN ACTIVITIES.
TO WHAT EXTENT THE STATUS QUO IN THE
INDIAN OCEAN AND FLOOR OF ECONOMIC
TRADE. IN THE U.S. PLANNING IN THE
INDIAN OCEAN. >> WE DO IN THE REPORT DETAIL
HOW CHINA'S INTERESTS ARE GETTING
MORE GLOBAL AS THEIR ECONOMY
EXPANDS, AS THEIR ECONOMY GROWS MORE
SOPHISTICATED AND MODERN, GROWING
MORE GLOBAL WHICH WE SEE AS A PRIMARY
DRIVER IN ANNOUNCEMENT OF ESTABLISHING
A FACILITY IN DJIBOUTI. IT IS UNDERSTANDABLE THEY WOULD
BE OPERATING IN OTHER AREAS.
BUT THAT DOES NOT INCLUDE VALUE STATEMENT ABOUT INTENTIONS OR
EFFECTS OF THIS EASE ACTIONS.
-- THESE ACTIONS. AS YOU KNOW SECRETARY CARTER
VISITED AND WILL CONTINUE TO ENHANCE
OUR BILATERAL ENGAGEMENT WITH INDIA.
NOT IN THE CHINA CONTEXT BUT BECAUSE
INDIAN IS AN INCREASINGLY IMPORTANT
PLAYER BY THEMSELVES. AND WE ARE GOING TO ENGAGE
BECAUSE OF IT'S VALUE.
>> FINALLY THE LAST QUESTION. THERE WAS A NEWS REPORT IN THE
CHINESE MEDIA, THE CHINESE ARMY DECIDED
TO UPGRADE IT'S -- (INAUDIBLE)
UPGRADING THE INFRASTRUCTURE. TO WHAT EXTENT IT WOULD HAVE
INCREASE TENSION WITH INDIA AND CHINA AS
YOU LOOK FORWARD IN YOUR REPORT ABOUT
THEIR DISPUTES THAT CHINA HAS WITH
OTHER NEIGHBORING COUNTRIES LIKE
INDIA? >> THE TERRITORY DISPUTE YOU
REFERENCE BETWEEN CHINA AND INDIA IS
SOMETHING THAT CONTINUES TO FESTER OVER
THE YEARS.
THE OTHER REPORT DETAILS WE HAVE
NOTICED INCREASE IN MILITARY CAPABILITY
CLOSER TO THE BORDER WITH INDIA. BUT IT'S DIFFICULT TO SAY HOW
MUCH OF THIS IS DRIVEN BY INTERNAL
CONSIDERATIONS TO MAINTAIN INTERNAL STABILITY AND
HOW MUCH IS AN EXTERNAL
CONSIDERATION. I DON'T REALLY HAVE A GOOD WAY
TO BREAK THOSE THINGS OUT.
>> YOU CALL THE DJIBOUTI FACILITY A BIG STEP
FORWARD FOR THE CHINESE MILITARY.
CAN YOU ELABORATE ON THE SIGNIFICANCE
OF THE FACILITY AND WHETHER OR NOT THE
U.S. GOVERNMENT EXPECTS SIMILAR FACILITIES TO POP UP AROUND THE
GLOBE IN THE COMING YEARS?
>> SURE. THE UNITED STATES HAS BEEN
OPERATING AROUND THE WORLD FOR DECADES.
OUR BASES AROUND THE WORLD ARE A
CRITICAL COMPONENT OF OUR GLOBAL
CAPABILITIES AND POSTURE AND ALLOW US TO
FULFILL OUR GLOBAL RESPONSIBILITIES.
WHAT CHINA HAS ANNOUNCED WITH DJIBOUTI
IS DIFFERENT THAN A U.S. STYLE BASE.
IT'S MORE OF A FACILITY THAT WOULD
FACILITATE LOGISTICAL SUPPORT FOR
OPERATIONS FAR FROM THE CHINESE MAINLAND.
I COULDN'T SPECULATE AS TO WHAT MAY
COME AS FAR AS ADDITIONAL BASES. IT'S POSSIBLE AS I MENTIONED
THE INCREASING GLOBAL INTEREST THAT
CHINA HAS.
AND IT'S AN ISSUE AS YOU SAW THAT WE ARE
DOCUMENTING THAT WE WILL CONTINUE TO
MONITOR. >> THE REPORT MAKES THE POINT
THAT THE DEVELOPMENT OF CHINA'S MILITARY
COULD REDUCE THE U.S.'S MILITARY
TECHNOLOGICAL SUPERIORITY.
WHAT WOULD YOU SAY, GIVEN WHAT YOU
HAVE SEEN, IS THE BIGGEST VULNERABILITY
THE U.S. FACES ON THAT FRONT? WHAT IS THE, IS THERE A NUMBER
ONE AREA OR A SERIES OF AREAS, IN YOUR
ASSESSMENT, THE U.S. FACES A RISK OF
LOSING THAT SUPERIORITY IN THE NEAR
TERM? >> I'M NOT GOING TO FOCUS ON
U.S. CAPABILITIES AND POTENTIAL
VULNERABILITIES. THE REPORT WE ARE ANNOUNCING IS
FOCUSED ON CHINA AND CHINA'S MILITARY
DEVELOPMENTS. WHAT I'M SAYING WE HAVE BEEN
WATCHING CHINA'S MILITARY OVER A LONG
PERIOD OF TIME AS DOCUMENTED IN THESE
REPORTS. WE WILL CONTINUE TO MAKE THE
INVESTMENTS AND POSTURE DECISIONS
NECESSARY TO MAINTAIN OUR MILITARY
CAPABILITY SO WE CAN CONTINUE TO DEFEND
OURSELVES, DEFEND OUR ALLIES AND
DEFEND OUR INTERESTS. >> IN THE REPORT YOU MENTIONED
THE WAY, IN YOUR OPENING REMARKS YOU
MENTIONED AN AGGRESSIVE STYLE BUT IT'S
DESIGNED TO STAY BELOW A THRESHOLD OF
CONFLICT. IN THE REPORT IT MENTIONS I
BELIEVE IN CERTAIN ACTIVITIES IN THE SOUTH
CHINA SEA AND EAST CHINA SEA, YOU SAID
YOU ARE GOING TO KEEP MONITORING FOR
CHANGES IN DOCTRINE.
WHAT CHANGES IN DOCTRINE ARE YOU
CONCERNED ABOUT OR PARTICULARLY WATCHFUL OF IN THOSE AREAS IN
TERMS OF HOW THE CHINESE AIR, NAVY AND
PARA MILITARY CONTROLS PARTNER WITH
ALLIED VESSELS?
>> I DON'T THINK I CAN CALL OUT A SPECIFIC
AREA WE ARE FOCUSING ON MORE THAN
ANOTHER. WHAT I'M REFERRING TO IS
CONFIDENCE- BUILDING MEASURES AND ANNEXES
WE HAVE ASSIGNED RECENTLY THAT DETAIL
HOW OUR NAVAL AND AIR PLATFORMS
INTERACT WITH ONE ANOTHER.
A KEY OBJECTIVE IS TO REDUCE RISK.
AS THEY OPERATE IN CLOSE PROXIMITY TO
ONE ANOTHER WE SEE IT AS IMPORTANT TO
ESTABLISH RULES OF BEHAVIOR TO ENSURE
THAT MISUNDERSTANDINGS AND POTENTIAL
FOR MISCALCULATION IS MINIMIZED AND THE
RISK OF UNINTENTIONAL INCIDENT IS REDUCED
AS MUCH AS POSSIBLE. >> IS THAT INTERACTION, IS THAT
EFFORT YIELDING MORE POSITIVE RESULTS
OR TRENDING POSITIVELY OR SEEING
INCREASED CONCERNS THOSE TYPE OF
AGREEMENTS INKED FOR RULES OF BEHAVIOR ARE
BECOMING FURTHER AWAY? >> WE ARE SEEING A POSITIVE
TREND IN TERMS OF PROFESSIONAL
INTERACTIONS BETWEEN OUR TWO FORCES.
WE THINK THESE ARE IMPORTANT AVENUES
TO PURSUE. AREAS THAT WE ARE GOING TO
PURSUE WITH THEM IN OUR
MILITARY-TO-MILITARY RELATIONSHIP.
>> THANK YOU.