The People's Republic of China: the next superpower? The People's Republic of China (PRC) is seen by many as an economic power with the largest standing army in the world that has the potential to translate economic power into the military sphere. As one of the elements of power, a nation's military potential is based not only on its ability to defeat an adversary, but also on its ability to coerce and exert influence. China's standing armed force, consisting of approximately 2.8 million active uniformed soldiers, is the largest military force in the world. They are supported by around 1 million reservists and around 15 million militiamen. With a population of more than 1.2 billion people, China also has a potential manpower base of an additional 200 million men eligible for military service available at any time. In addition to this wealth of manpower, China is a nuclear power. It has enough megatonnage, missiles and bombers to hit the United States, Europe, its Asian neighbors and Russia. Despite the recent announcement of reduction in targeting between China and the United States, this does not change China's ability to hold Los Angeles or other American cities hostage to the nuclear threat. China is also an economic power of considerable strength. The PRC's economy quadrupled in the 15 years to 1995. The World Bank's latest report on its economy, China 2020, indicates that China's gross domestic product (GDP) increased at a rate of between 6.6 % and 8% annually between 1978 and 1995. And China has foreign exchange reserves of about $140.6 billion, mostly from foreign direct investment. For Chinese leaders, the economy is the most important factor in determining future military power. The director of the political department of the Guangzhou Military Region of the People's Liberation Army (PLA) described national power as a combination of economic strength and "level of defense modernization." Chinese leaders believe economic growth will stagnate if resources are devoted to military modernization at the expense of broader economic development. There are many serious problems that China's leaders must address if they want to maintain healthy economic growth. Issues include an aging population, state-owned enterprises (SOEs) operating at a loss (50%), potential labor unrest and a potential financial crisis. If China wants to continue on its current economic path, the…half of the paper…, Asian or otherwise, to dominate the Asia-Pacific. As demonstrated in the document: China has expanded its national security objectives; China has changed its patterns in the use of military force; China is developing a modern war machine and sea control capabilities; China is attempting to build an anti-American, anti-Western alliance. There can only be one reason for these activities. These are not moves directed against local adversaries or guided by self-defense principles. This is a move aimed at the world's only remaining superpower, the United States. The American superpower is based on its mastery of the North and South American continent, the oceans surrounding that land mass, and an advanced presence in strategically important regions of the world such as Western Europe, the Persian Gulf, and Asia. If China and the PLA can marginalize the United States in Asia, then they can challenge the United States' role as the world's sole superpower. Only time will tell if they will be able to realize their ambitions. Sources http://carlisle-www.army.mil/usassi/welcome.htm Global tourism forecast for the year 2000 and beyond, published by the World Tourism Organization.