In November 2006, a Chinese submarine stalked the US aircraft carrier USS Kitty Hawk off the Japanese coast. Fortunately things did not get out of hand.
This incident has prompted fears in the US that one day China may pose a threat to the US with a naval armed race in the Pacific.
In the past, Chinese military strategy relied on its two major assets. A large territory which allowed them to retreat thereby over stretching the invading forces, and very large land based armies, which could then overwhelm the enemy with sheer numbers.
However the recent demonstration of US hi-tech warfare in Iraq has brought about a rethink in military strategy the world over. The speed of the American advance, combining land, air and naval forces has thrust modernization of the armed forces to the forefront in every nation with powerful armed forces.
Nowhere is this new military thinking more relevant than to China because a rapid enemy advance would wipe out any advantage of size.
The Chinese have clearly gone on the offensive. The launching of an anti-satellite missile is part of the process. The US naturally perceives this as a threat to its satellites on which it is dependent for communication, navigation and aerial surveillance.
The Chinese defense budget has jumped to $45 billion from just $15 billion in 2000. The actual figure could be much higher. It is developing new submarines also. The US feels that its dominance in the Pacific since World War II is at risk.
Chinese experts are quick to point out that the country dependent on maritime trade has to have a strong navy to protect its trading interests. China is very vulnerable in the straits of Malacca. Most of China's imported oil passes through these waters linking the Indian and Pacific oceans. China feels that it needs a strong enough naval deterrence to prevent a blockade of these vital straits.
Although the Chinese insist that the buildup is for self defense, the fact remains that it won't be long before it is able to confront the United States in this region.