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Staff Paper
China’s ability to conduct conventional cruise and ballistic missile strikes on Guam is growing, even as the island’s strategic importance to the United States is increasing. This report examines the reasons behind China’s development of new conventional weapons that can reach Guam, the array of forces it could employ against Guam in a potential conflict, and policy options for the United States to consider in response. Accuracy limitations and platform vulnerabilities render the current risk to U.S. forces on Guam in a potential conflict relatively low, but China’s commitment to continuing to modernize its strike capabilities indicates the risk will likely continue to grow going forward.
Staff Paper
From December 2013 to October 2015, China built artificial islands with a total area of close to 3,000 acres on seven coral reefs it occupies in the Spratly Islands in the southern part of the South China Sea. Although dredging, land reclamation, and the building of artificial islands are not unique to China, the scale and speed of China’s activities, the biodiversity of the area, and the significance of the Spratly Islands to the ecology of the region make China’s actions of particular concern. In addition to damage to the reefs, China’s island building activities have negatively impacted fisheries in the immediate area of the reclamation sites, and could negatively impact the health of fisheries in the coastal areas of the South China Sea. The building of these artificial islands will almost certainly lead to increased Chinese fishing in the surrounding waters, which could raise the risk of a clash between Chinese fishing boats and those of other claimant countries. Moreover, China’s island building activities may have violated some of its environmental commitments under international law; the ongoing case initiated by the Philippines at the Permanent Court of Arbitration in The Hague regarding China’s claims and activities in the South China Sea is considering this possibility.
Staff Paper
While the People’s liberation Army continues to build anti-access/area denial capabilities to deter or delay a U.S. military response to a potential conflict with China, Beijing also appears to be pursuing other options—including nonmilitary options prior to a conflict—likely intended to erode the United States’ strategic position, freedom of action, and operational space in the Asia Pacific. The nonmilitary options being pursued include engagement, coercion, and alliance splitting focused on U.S. allies and partners in the Asia Pacific region. Although Beijing’s attempts to limit U.S. force projection capabilities in Asia through these efforts have produced mixed results, there is little indication Beijing will abandon its efforts to mitigate the U.S. military presence in the region.
Staff Paper
This report assesses the extent to which China has enforced its air defense identification zone (ADIZ) in the East China Sea, and considers the potential conditions and implications of a Chinese ADIZ in the South China Sea.
Contracted Research
The report examines the Chinese government’s actions to promote the use of its currency, the renminbi (RMB), in the global monetary system as a payment currency for cross-border trade and financial transactions, a vehicle currency for foreign trade and international capital transactions, and a reserve currency. The report analyzes the potential effects of the rising prominence of the RMB on the financial clout of the United States and the U.S. dollar’s role in denominating international trade transactions and settling cross-border financial transactions.