I think China is the biggest threat to the U.S. today. Bigger than alQaida, definitely bigger than Saddam ever COULD have been - even if the WMD existed.
Are they more than a regional power right now? No. But I don't think we want a "sputnik" type suprise one day to make us realize that they have left that mode. However, "analysis"/statements like "the Chinese could not successfully seize Tawain, even without US support" has a kind of McArthuresqe quality about them - as in, McArthur to JCS, pre November 1, 1950. You don't need an abbacus to figure out that if they elected to take that Island back from the theives who stole it from the natives back in '49, they could do so. It would cost them dearly, but they could do it.
Hell, I posted an exerpt - either from from STRATFOR or from the Naval Institute's "Proceedings" magazine - a couple of months back describing the progress they are making toward making a possible defense of Tawain nearly impossible. Of much greater significance is those same steps could seriously hamper our ability to defend South Korea (greater significance in strategic significance, at least) or even Japan.
As much damage as the alleged secrets the Chinese did or didn't steal during the 90s may do in the long run, the far bigger problem (immediate and long-term) is Chinese acquisition of Soviet technology, particularly in the area of submarines - against which the whiz-bang toys and SpecOps stuff that Rummy & Co. seem to be inclined to are about as effective as pissing into a head wind.
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