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China's military power: standing armed force: 2.8 million active soldiers in uniform the largest military force in the world. Approximately 1 million reservists some 15 million militia has enough megatonnage, missiles, and bombers to hit the United States, Europe, its Asian neighbors, and Russia able to hold Los Angeles or other U.S. cities hostage to nuclear threat
Economic power: economy quadrupled in the 15 years up to 1995 GDP increased at a rate of 6.6 - 8 percent annually between 1978 and 1995 foreign exchange reserves of about U.S.$140.6 billion
World reaction: claims that fiscal stimulus efforts have been weakened by inflows of cheap Chinese imports attempt to use protectionism America's reaction: tariffs on Chinese tires India's reaction: filed an unfair trade complaint Japan: decreased foreign investment into China
Effect on U.S. roles in East Asia: Possible positive: successive administrations hope that the PRC will become a great power whose international impact, on balance, is positive. Its economic growth would complement its neighbors. It would participate actively in a variety of international regimes that seek to constrain deviant behavior. Possible negitive: growing concern in the United States that China is accumulating power in order to make China the dominant power of East Asia. It would strive to secure an economic and political dominance whereby Beijing's neighbors would not take a major initiative without consulting it and would tie their economic growth to China's. This causes concern because it leads to regional instability and implies the displacement of the United States and changes in our traditional alliances.
