China's modernization is already rapidly improving the welfare of one quarter of mankind and changing communist ideology. But China is not only growing more stable and prosperous, it is also growing stronger. China's fourth modernization, national defence, is rarely treated in great detail, but it is increasingly clear that the reform of the defence sector is also having an important impact on both domestic and foreign policy. The process began in earnest in 1978 and by 1987 had completed its first stage of reorganization. At a major meeting of military and civilian officials in December 1986, the strategy for the next phase of military modernization was discussed.1 At the dawn of the new age of Chinese military power, it is essential to assess the implications of a stronger China for China itself, its neighbors, and the great power balance.
