China’s Rapid Military Build-Up Highlighted in New Report

The United States is facing an ever-more sophisticated Chinese military. On December 23, the Department of Defense released its annual report on the state of the People’s Liberation Army (PLA). The report documents Beijing’s pursuit of a military capable of countering the United States across a range of domains while preparing to potentially use force to seize Taiwan.

The report highlights the Chinese military’s commitment to building out the capacity to project power abroad while increasing its reliance on artificial intelligence (AI) and other emerging technologies.

China Seeks New Aircraft Carriers, Military AI

The report notes that China has significantly invested in its capacity to project military power abroad, including announcing plans to build six new aircraft carriers by 2035, introducing a range of land, air, and sea-based missile systems, and deploying a new fifth-generation fighter aircraft. These developments match the surging growth of China’s nuclear arsenal, including a rapid build-out of silo-based missiles in western China and lower-yield warheads likely intended for battlefield use.

The DoD study also highlights China’s growing efforts to integrate AI into its unmanned systems and bolster its cyber operations. Along with training drones and other systems alongside human operators, Chinese military-linked cyber operations have increasingly harnessed AI to map adversaries’ networks — building on the efforts of “Volt Typhoon” to target critical U.S. military infrastructure. The report also notes that the Chinese military continues to rely on smuggling networks to access restricted American AI chips alongside domestic efforts to produce sufficient alternatives.

Beijing Is Doing More Than Just Developing Its Arms

The report highlights a Chinese military increasingly willing to deploy abroad while supported by a strong domestic industrial base capable of achieving key breakthroughs in emerging technologies. Over the past year, China has engaged in its largest military exercise around Taiwan in three decades, deployed two of its most advanced aircraft carriers in the waters off Japan, practiced anti-submarine warfare with Russia’s Pacific Fleet, and publicly showcased its nuclear triad for the first time.

Beijing’s willingness to engage in ever-larger shows of force is partially the product of an advanced science and technology sector driven to achieve breakthroughs in key strategic technologies. Backed by substantial government investments, the Chinese military has accelerated its efforts to integrate quantum computing, biotechnology, and advanced sensing technologies across a range of military domains — a trend highlighted by a range of new drones and advanced armaments displayed during its most recent military parade in Beijing in September.

Washington Must Target China’s Military-Civil Fusion Program

The report highlights an apparent dissonance within Washington’s approach to China. Despite noting that the Chinese military remains reliant on American AI chips, the report remains silent on the Trump administration’s recent decision to sell high-end Nvidia chips to Beijing. Moreover, the report argues that Chinese hackers have engaged in operational preparation of the battlefield to hamper the U.S. military in the event of a conflict — a threat notably missing from the recently released National Security Strategy.

China’s rapid buildup should prompt the United States to work with its regional allies and partners, particularly Taiwan, South Korea, Japan, and the Philippines, to strengthen deterrence through military sales, joint exercises, co-producing equipment and weapons systems, and strategic stockpiling. These efforts should be paired with tighter export controls on key AI chipmaking components and more stringent scrutiny of joint U.S.-China research programs related to strategic technologies.

Jack Burnham is a senior research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.