China arms buildup hurts prospects for peace: US

However, increased economic and trade interaction between the two sides reduces the possibility of war “in the near future,” the U.S.-China Economic and Security Review Commission (USCC) said in the final draft of its annual report.

China “has progressed substantially” in military modernization since 2009, including flight testing its J-20 stealth fighter, its first aircraft carrier and the world's latest anti-ship ballistic missile, said the draft report, which is scheduled for release on Nov. 16.

Such modernization gives China the military advantage, “making it less likely that a peaceful resolution to the Taiwan issue will occur,” the report stated.

“A gross military imbalance could also lead Beijing to act pre-emptively to resolve the cross Strait problem, possibly resulting in U.S. involvement,” the draft report said.

China has maintained that reunification with Taiwan is a goal that must be achieved — by force if necessary.

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