From The Washington Post (link):
The Pentagon’s annual report to Congress on China’s military power, released this week, reveals that Beijing’s buildup has advanced well beyond what most analysts considered likely just 10 years ago. Some highlights: The new arsenal of the People’s Liberation Army includes more than 700 missiles deployed opposite Taiwan, a fleet of sophisticated diesel electric submarines, a growing nuclear submarine capability and advanced destroyers armed with lethal anti-ship cruise missiles. By making the potential cost of any U.S. intervention in the Taiwan Strait extraordinarily high, Beijing has accomplished its decade-long goal of establishing a credible military threat to Taiwan — as well as a deterrent to the United States. The question is, what next?
See also: Pentagon paper shows ‘Cold-War mentality’ from China Daily.