China is
exploiting Western commercial technology, carrying out aggressive cyber
espionage and buying more anti-ship missiles as part of a steady build-up of
military power, the Pentagon said
Friday.
Beijing is working to take
advantage of "mostly US" defense-related technologies in the private sector as
part of a long-running effort to modernize the country's armed forces and extend
China's reach in the Asia-Pacific region, the Pentagon wrote
in a report to Congress.
"One of the PRC's (People's Republic of China) stated national
security objectives is to leverage legally and illegally acquired dual-use and
military-related technologies to its advantage," it said.
And China, which has
the world's second largest defense budget
behind the United States, "openly espouses the need to exploit civilian
technologies for use in its military modernization" and dual-use technology
transfers could have a "substantial" cumulative effect in boosting the country's
army.
The Pentagon warned that "interactions with Western aviation manufacturing
firms may also inadvertently benefit China's defense aviation industry."
European aerospace giant Airbus opened a production line for the A320
aircraft in China in 2009. The Defense Department pledged to prevent exports of
advanced technologies that could be diverted to China's military.
Echoing recent warnings from intelligence
officials, the Pentagon blamed China for "many" of the world's cyber intrusions
over the past year that have targeted US government and commercial networks,
including companies "that directly support US defense programs," it
said.
The report warned that "Chinese actors are the world's most active and
persistent perpetrators of economic espionage," and predicted that those spying
efforts would continue, posing "a growing and persistent threat to US economic
security."
China's investments in cyber warfare were cause
for "concern," said David Helvey, acting deputy assistant secretary of defense
for East Asia and Asia Pacific Security Affairs. Beijing was clearly "looking at ways to use cyber for offensive
operations," Helvey told reporters, adding that there was no sign that China was
ramping up digital activities.
The American military has long worried that China could potentially limit
the reach of US naval ships in the western Pacific with new weapons, and the
Pentagon report underlined those concerns, pointing to Beijing's growing arsenal
of missiles.
"It is also acquiring and fielding greater numbers of conventional
medium-range ballistic missiles (MRBMs) to increase the range at which it can
conduct precision strikes against land targets and naval ships, including
aircraft carriers, operating far from China's shores beyond the first island
chain," said the report.
China was pouring money into advanced air defenses, submarines,
anti-satellite weapons as well as anti-ship missiles that could
all be used to deny an adversary access to strategic areas, such as the South
China Sea, the report said.
US strategists -- and some
defense contractors -- often refer to the threat posed by China's so-called
"carrier-killer" missiles but Helvey said the anti-ship weapons currently have
"limited operational capability."
China's military budget officially reached $106 billion in 2012, an
11.2 percent increase. But the US report said China's defense
budget does not include major expenditures such as improvements to nuclear
forces or purchases of foreign-made weapons. Real defense spending amounts to
$120 to $180 billion, the report said.
US military
spending, however, still dwarfs Chinese investments, with the Pentagon's
proposed budget for 2013 at more than $600 billion.
Despite a sustained increase in
defense spending over the past decade, China had experienced setbacks with some
satellite launches and ambitious projects to produce a fifth-generation fighter
jet and modern aircraft carrier still faced challenges, the report said.
Although looking to expand its
traditional missions to include counter-piracy and humanitarian efforts, the
People's Liberation Army's top priority remained a possible conflict in the
Taiwan Strait, with China focused on preventing the United States from
intervening successfully in support of Taiwan, the report
said.
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