Taken from: http://www.insightmag.com/news/259476.html
...Chinese leaders believe that, "despite overwhelming U.S. military and technological superiority, China can still defeat the United States by transforming its weakness into strength and exploiting U.S. vulnerabilities through asymmetric warfare, assassin's-mace weapons, deception, surprise and pre-emptive strikes."
The Bush administration's ambiguous China policy got a kick in the pants recently when the Pentagon and the bipartisan, congressionally chartered U.S.-China Security Review Commission issued separate reports describing Beijing's looming military threat to U.S. national interests. Both reports - mandated by Congress at the end of the Clinton era to evaluate China's growing military power - ratified the long-stated views of U.S. national-security analysts that Beijing has been using cash from American consumers and investors to bankroll an ambitious military buildup that ultimately may be used to attack the United States.
Both reports begin by warning that the United States has a poor understanding of the Chinese military and Beijing's intentions because intelligence and analysis on China is sketchy. And that alone is sending shock waves through the foreign-policy, defense and intelligence establishments.