U.S. report names China as top military threat, notes pressure on Taiwan

Taipei, March 26 (CNA) China remains the top military and cyber threat to the United States and continues to make progress on capabilities to seize Taiwan, a report by U.S. intelligence agencies said Tuesday.

In its Annual Threat Assessment, the agencies divided threats facing the U.S. into two broad categories, "nonstate transnational criminals and terrorists" and "major state actors," which included China, Russia, Iran and North Korea.

Of those countries, China stands out as the one "most capable of threatening U.S. interests globally," though it is also more cautious about risking its economic and diplomatic image, the report said.

"China's military is fielding advanced capabilities, including hypersonic weapons, stealthy aircraft, advanced submarines, stronger space and cyber warfare assets, and a larger arsenal of nuclear weapons," U.S. Director of National Intelligence Tulsi Gabbard said, in testimony about the report to the Senate Intelligence Committee.

While China would like to maintain positive ties with the U.S., it is also building up its military capability, in part "to gain advantage in the event of a military conflict with the United States" over China's efforts toward unification with Taiwan, Gabbard said.

The report warned that a conflict between China and Taiwan would disrupt U.S. access to trade and semiconductor technology critical to the global economy.

"Even without U.S. involvement in such a conflict, there would likely be significant and costly consequences to U.S. and global economic and security interests," it said.

China is likely making "steady but uneven" progress on capabilities it would use to seize Taiwan and deter or defeat U.S. military intervention, the report said.

Beijing will continue to pressure Taiwan with "economic coercion" and will probably increase it if it sees Taiwan taking steps toward formal independence, the report said.

Among possible moves by China to strengthen coercion cited by the report were suspending preferential tariff terms, selectively banning Taiwan imports to China and arbitrarily enforcing regulations.

Despite its growing capabilities, China also faces "daunting" challenges, including corruption, demographic imbalances, and fiscal and economic struggles, which will impair its leaders' strategic and political achievements, the report said.