Beijing called in the U.S. ambassador to denounce the annual Defense Department report concerning its military power. Because it addressed issues like China's (not-so "potential") threat to Taiwan, they were pretty ticked about it.
Vice foreign minister Yang Jiechi stated, "It's a crude meddling in Chinese internal affairs, and it tries to sow discord between China and other countries." Source.
You gotta love statements like this -- there's just so much to analyze. "Internal affairs," for example. Is talking about China's threat to Taiwan really "internal affairs?" Taiwan's a democracy that has never been a part of the PRC, and doesn't want to be. What's so "internal"?
The PRC is trying to establish a moral assumption that the U.S. is not minding its own business, and is using a tone that, if reversed, would be condemned as imperialistic. China does that a lot.
Second, there's the part about "sow[ing] discord." Which do you think sows more discord, the Chinese military buildup or the U.S. report about it? Which do you think the countries around China are more upset about -- that "discord has been sown," or that there's a bunch more transportable missiles that could be moved over and pointed at them?
I think China's just upset because someone's reporting on what they're surreptitiously trying to accomplish -- the rebirth of a glorious Sino-centric hegemony. It's trying to reestablish its position in the world without conforming to its rules. Deng Xiaoping laid out his approach to the post-Cold War world with his "24 character" strategy: "Observe calmly; secure our position; cope with affairs calmly; hide our capacities and bide our time; be good at maintaining a low profile; and never claim leadership." Source
"Be good at maintaining a low profile" and "hide our capacities" are of particular interest because they seem to be taken directly from Sun Tzu's "The Art of War." Warfare is the Way (Tao) of deception. Thus although [you are] capable, display incapability. When committed to employing your forces, feign inactivity. When [your objective] is nearby, make it appear as if distant; when far away, create the illusion of being nearby. Source
For this reason, the Pentagon estimates that the real figures for China's defense spending are two to three times what is stated. I think China's reaction suggests it's true. If it were not, China would simply be content to let the illusion persist.
China's biggest threat to the United States is not its military capacity -- we still spend 17.8 times more on defense than China does. The real danger is China's attitude. While the United States pursues openness to establish a deterrent, China pursues secrecy. The U.S. seeks to avoid conflict, and has taken steps to maintain the status quo; China desires change, and is following a fatalistic philosophy that concludes the inevitable end of policy is war.
The People's Daily concludes the Defense Department's "objective [is] to restrain, encircle and block up China." Source. This perspective reveals China's true goal is to unfetter their "restraints," and "unblock" the way to their rightful place in the world.
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