The report, produced each year by the Pentagon, warns Beijing is gearing up for conflict — potentially over Taiwan — within the next two years.

The Trump administration has approved the largest single package of weapons sales to Taiwan in U.S. history. Many of the systems mirror those the United States has supplied to Ukraine. The move is part of a broader U.

Chinese President Xi Jinping installed new military leadership for its central and eastern regions amid an unprecedented purge of the top defense echelons.

China has significantly stepped up its probing of Taiwan’s air and maritime boundaries since 2023, the report said, with activity within Taiwan’s air defense identification zone increasing more than 60%, from 1,703 incidents that year to 2,771 last year, the report said. China’s warships also stepped up their operations in the Taiwan Strait.

In a war with China, Taiwan could have an asymmetric advantage with a high volume of cheap and survivable weapons, a retired admiral said.

Analysts examine Taiwan-related policy announcements, a new commemoration day and military posturing for clues to Beijing’s intent.

China has lodged a diplomatic complaint with Japan regarding the visit by a high-ranking official of Japan's ruling Liberal Democratic Party to Taiwan, the Chinese foreign ministry said on Monday. "China is firmly opposed and has lodged solemn representations with the Japanese side,

Citigroup Inc. has upgraded its recommendation on Taiwan equities, while cutting its view on China, citing stronger links to global artificial-intelligence supply chains and a more favorable earnings outlook.