The rapid modernization of China’s People’s Liberation Army (PLA) in recent years has raised concerns not only in Asia but also in the United States. A new report by the American think tank, the Center for Strategic and International Studies (CSIS), states that China’s military power is now emerging as the United States’ biggest “pacing threat” globally. According to the report, President Xi Jinping has carried out extensive reforms within the PLA since taking power in 2012. He prioritized military discipline, technological advancement, and defense spending. Once based on outdated technology, the army is now equipped with modern weapons, cyber warfare systems, and missile power.
13-fold increase in defense budget
The CSIS report states that China’s defense budget has increased 13-fold in the last 30 years.
In 1995, China’s defense budget was a few billion dollars.
In 2025, it increased to US$247 billion (China’s official figure).
Meanwhile, the Stockholm International Peace Research Institute (SIPRI) has projected a real Defense expenditure was estimated at $318 billion, while a University of Texas report put it at $471 billion.
The report states that in 2012, China’s defense expenditure was only one-sixth of America’s, but by 2024, it had increased to one-third.
China’s Growing Assertiveness in the Indo-Pacific
In the Indo-Pacific region, China now spends many times more than US allies like Japan and South Korea—five times Japan’s, seven times South Korea’s, and even dozens of times Taiwan’s. Taiwan’s entire annual defense budget is now equivalent to just one year’s share of China’s growth. This has forced Taiwan to adopt an asymmetric defense strategy, which can inflict heavy losses on China and deter aggression.
“The World’s Largest Navy
The PLA Navy (PLAN) has now become the world’s largest navy. China currently has 350 warships, while the US has approximately 290. CSIS estimates that by 2030, China will have a fleet of 435 ships. Recently, the Chinese Navy conducted maritime exercises near Australia and New Zealand, alarming both countries. The report states that “although the US still leads in terms of total ship tonnage and missile launchers, China is rapidly catching up in these areas.”
China’s dominance in the skies
Both the PLA Air Force and Navy have significantly increased their combat aircraft fleets. China now operates two fifth-generation fighter jets: the J-20 and the J-35/J-35A. Like the United States, China is also testing sixth-generation fighter jets. This indicates that China has now technologically advanced towards becoming not only an Asian but also a global aerospace power.
Advances in Nuclear and Cyber Power
The report also states that China is rapidly expanding its nuclear arsenal.
China now possesses hundreds of intercontinental ballistic missiles (ICBMs).
It has also invested heavily in hypersonic weapons and satellite killer systems.
China’s capabilities in cyber warfare and artificial intelligence are now approaching those of the United States and Russia.
