Abstract
While China's military modernization program has brought improvements in the country's military preparedness, the rate of modernization has been slower than hoped for. The lack of consensus on certain crucial matters, combined with continued factionally based frictions and ongoing financial constraints, indicates that the outlook for significant near-term improvements in the People's Liberation Army's fighting capabilities relative to those of the United States and the Soviet Union is not encouraging. Nonetheless, even after major cuts in size, the PLA will remain the world's largest military, and it can draw on the world's largest pool of reservists. Hence China's military potential against other Asian states remains substantial, and may even increase somewhat.