From Space.com : "China’s escalating expertise in space is also enhancing its competence as a global military force. Along with lofting future radar, ocean surveillance, and high-resolution photoreconnaissance satellites, China’s rise as a space power also includes pursuit of an offensive anti-satellite system.
"Those observations are included in a new report—Military Power of the People’s Republic of China: A Report to Congress—issued by the U.S. Office of the Secretary of Defense.
"The annual Pentagon report issued late last month addresses the current and future military strategy of the People’s Republic of China. It takes a look at the current and probable future course of military-technological development on the People’s Liberation Army (PLA) and the tenets and probable development of Chinese grand strategy, security strategy, and military strategy, and of the military organizations and operational concepts, through the next 20 years.
“'In the next decade, Beijing most likely will field radar, ocean surveillance, and high-resolution photoreconnaissance satellites. China will eventually deploy advanced imagery, reconnaissance, and Earth resource systems with military applications,'” the report states.
“China may be developing a system of data relay satellites to support global coverage, and has reportedly acquired mobile data reception equipment that could support more rapid data transmission to deployed military forces and units,” the report states.
From The Hindu : United States Defence Secretary Donald Rumsfeld on Saturday warned China for its perceived lack of transparency in defence spending...
He did not, however, spell out what the "consequence" might be.
The Pentagon chief said: "The Chinese people are educated, talented, and live in a nation with great potential....But there are aspects of China's actions that can complicate their relationships with other nations. The lack of transparency with respect to their military investments understandably causes concerns for some of their neighbours."