The People's Republic of China's (PRC's) and the People's Liberation Army's (PLA's) understanding of the military balance is fundamentally based on systems warfare concepts. Systems concepts drive China's perceptions of the successes of its three-decade-old modernization and its identification of enduring or emerging weaknesses. China's leaders recognize the qualitative and quantitative improvements in PLA weapons and technology; however, in key areas essential to conducting systems confrontation and systems destruction warfare, there remain significant gaps that have received the attention of Xi Jinping himself. During Xi's tenure, the PLA has been forced to confront a range of problems that go well beyond technological modernization, force structure, and organizational relationships. Still, both the United States and the PRC, through different evaluation processes, have concluded that war with the other has the potential to be extremely risky from an escalation standpoint, protracted and costly, and fatally harmful to long-term credibility and/or strategic goals. This analysis is one of the first to detail how the PLA understands and assesses military balance. The PLA sees itself as the weaker side in the overall military balance, largely because it has made only limited progress in those key areas that will define future warfare, most importantly informatization and system-of-systems-based operations. Necessary improvements have not materialized quickly and will likely take time because of the PLA's organizational culture and the improvements' systemic complexity. A refined understanding of Beijing's view of the PLA also has significant implications for U.S. policymakers, military commanders, and planners.
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