The United States' defence department says China is developing "disruptive" technologies for nuclear, space and cyber warfare.
These are shifting the military balance in Asia and have implications beyond the region, said the latest report by the Pentagon on China's armed forces.
It again criticised Beijing for a lack of transparency in reporting military spending and security policy.
The report also welcomed the rise of a peaceful, stable and prosperous China.
"However," it adds, "much uncertainty surrounds China's future course, particularly regarding how its expanding military power might be used." - BBC
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