China's military is modernizing, but there are distinct limits to the modernization program. First, the current force structure is so old that the rate of retirement will exceed the rate of acquisition in all major weapons categories, with the possible exception of major surface combatants. This means that the size of China?s armed forces will continue a recent pattern of decline, and to drop quite steeply in some cases, such as combat aircraft. The only exception may be China's surface combat ships. (See China versus Region charts.)
Second, the modernization is proceeding slowly and in a piecemeal manner. All military forces take a significant amount of time to integrate new weapon systems into its forces; for China the process seems to take longer than most.
Third, China is adding only a handful of modern systems to its inventory. New systems are purchased in small batches or singly, which is cannot dramatically change the balance of power. Moreover, while "modern" relative to existing Chinese systems, current acquisitions from Russia are not as capable as the comparable systems fielded by the United States or even Japan, South Korea, or Taiwan (in some areas).
Finally, China's military modernization plan has highlighted the inability of the indigenous arms industry in China to produce the advanced technology weapon systems that the military wants. The recent return to dependence on foreign assistance (specifically, aircraft and naval vessels from Russia, and technical assistance from Israel) runs contrary to the Chinese government?s desire to fully control its own military destiny.