Intel report warns about China’s increasing military power with its economic, technological and diplomatic influence to leverage its dominant positions in key global supply chains to accomplish its strategic goals

China’s Communist Party (CCP) will continue efforts to become the preeminent power in East Asia and a major power on the world stage and will try to press Taiwan on unification, damage US influence and promote an authoritarian system around the world, according to the US intelligence report.

At the same time, the report also said that China will utilise opportunities to reduce tensions with the West according to their interests and maintain favourable economic policies to reduce dependency on foreign technologies, enable military modernisation and sustain economic growth.

Intel report warns about China’s increasing military power with its economic, technological and diplomatic influence to leverage its dominant positions in key global supply chains to accomplish its strategic goals. However, China faces problems ageing population, corporate debt, economic inequality and growing resistance to authoritarian rule.

The US intel community sees that China in 2023 will continue to apply pressure and possibly offer inducements for Taiwan for unification but in accomplishing its goal, probably, it would have wide-ranging effects, including disruption to global supply chains for semiconductor chips because Taiwan dominates the production of cutting-edge chips.

In the South China Sea, this year, China to continue the use of air, naval, coast guard and militia forces to intimidate other claimants and control contested areas. Similarly, China is pressuring Japan over contested areas in the East China Sea.

Also, China will try to expand its influence via the Belt and Road Initiative (BRI) and Xi’s new flagship policies — the Global Development Initiative and the Global Security Initiative. Under BRI, Beijing will seek deeper cooperation on clean energy, electric vehicles and climate change, which may minimise international criticism.

On relations with Russia, the report stated that despite the backlash, China will maintain its diplomatic, defence, economic and technological cooperation with Russia to challenge the United States, even as it will limit public support.

Source: Annual Threat Assessment of the US Intelligence Community