Military Power of the People's Republic of China is a publication of the United States Department of Defense that provides an estimation of the military power and strategy of the People's Republic of China.
The Defense Department is required to annually produce and issue the report under Section 1202 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65.)
The 2006 report notes that the Chinese military has expanded its presence in the area of the Taiwan Strait and that the balance of forces is "shifting in the mainland's favor." It also states that the Chinese military budget has grown significantly, although is not keeping pace with overall government expenditures.
Based on the report, Slate magazine writer Fred Kaplan called the Chinese military a "paper tiger" that is responsible for "about a quarter of the Pentagon's budget."
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