Considers potential Chinese responses to U.S. transformation efforts and offers possible U.S. counterresponses. For the past decade, Chinese military strategists have keenly observed the changes in U.S. national strategy and military transformation. This report examines the constraints, facilitators, and potential options for Chinese responses to U.S. transformation efforts and offers possible U.S. counterresponses (particularly in light of whether Taiwan moves toward or away from formal independence).

Analyzes the dynamics of the transfer of technology and capital between Taiwan and China and assesses their impact on cross-Strait relations and the worldwide semiconductor industry The flows of trade and investment across the Taiwan Strait have increased dramatically in recent years, driven largely by the increasing integration of the information technology (IT) sectors of Taiwan and the People's Republic of China. This report examines the economic and political implications of cross-Strait flows of technology and capital. The authors comprehensively analyze the investment and IT transfer dynamics between Taiwan and China and their implications for the global semiconductor industry and U.S. policymaking.