SINCE the mid-1990s, the People's Republic of China (PRC) has been identified as a looming strategic threat. Some have asserted that China is “on the warpath.” There have also been concerns about a Chinese military buildup – rising defense budgets, reported actual or attempted purchases of foreign military hardware, as well as indigenous defense research and development efforts. In terms of military capabilities, most experts contend that China poses only a modest challenge to the region and the world – at least in the short term. Others see more serious problems posed by China's military modernization.