The U.S.-China security relationship is poised at a moment of choice, and the outcome of this choice could not be more important for the Asia-Pacific region and the world. The United States and China are the world's two largest economies. Their futures are deeply intertwined, and their foreign policies are increasingly coming into contact around the globe. Conflict between the United States and China remains a possibility, even though such an outcome is against both countries' interests. Yet cooperation is also possible. Actions that the two nations choose to undertake with or against each other will determine which path we follow and shape our world for years to come.
Today both nations face a number of common transnational threats and have many common strategic interests at the national, regional, and global levels. Our ability to work together depends on whether each side is able to accommodate the interests of the other enough to make cooperation possible. Cooperation can be challenging. It requires hard work from both sides. However, evidence in recent years shows that when China and the United States work together on shared interests, such as those involving North Korea and piracy, progress can be achieved.
President Barack Obama has worked to increase U.S.-China security cooperation in areas stretching from counterterrorism and nonproliferation to energy security. Particularly welcome are increasing military-to-military contacts with China. Such contacts are an essential part of efforts to promote understanding, build trust, prevent conflict, and when appropriate, foster cooperation. China has also made efforts toward a more cooperative path for U.S.-China security relations. The Joint Statement resulting from President Obama's recent visit to China committed that nation to a strategic and economic dialogue with the United States. In addition, China's recent counter-piracy efforts in the Gulf of Aden reflect a constructive use of military power in line with its international responsibilities. Moreover, the reduction in tensions across the Taiwan Strait is a positive development with the potential for further improvement.
Yet, there is still much progress to be achieved and we must remain vigilant in those areas that have the potential to harm relations. We continue to see troubling trends and ambiguities regarding China's military modernization, including a missile buildup across from Taiwan and the steady increase of power-projection capabilities which do not obviously support any of China's stated national security objectives. China's most recent military budget continues a trend of double-digit increases and its strategic intentions remain opaque to nations throughout the Asia-Pacific region. This was highlighted most recently by China's missile-intercept test on 11 January and by the cyber attacks on Google. Such attacks undermine the ability to operate with confidence in cyberspace, which is critical in a modern society and economy.
Militarily, the United States must remain prepared for whatever the future holds in the U.S.-China security relationship. As cooperation is in our national interest, we must first and foremost prepare for a cooperative relationship. However, we must also be prepared for less favorable outcomes. China is not the only, or the most critical, security challenge we might confront in the near future. For this reason, U.S. defense planning need not and should not concentrate on China the way it did on the Soviet Union during the Cold War. A focus on enduring U.S. strategic interests such as maintaining secure international sea lanes and U.S. global power-projection capabilities will go far in ensuring that we are prepared if the U.S.-China security relationship takes a detour down the wrong path.
The United States must carefully examine its policies and actions with respect to China to confirm that they effectively address the challenges and opportunities arising from a rapidly changing geo-strategic landscape. But they must also reflect a long-term vision for U.S.-China security relations that best supports our national, regional, and global security interests.
I continue to believe China is not necessarily destined to be a threat to the United States. Likewise, China need not view the United States as a threat to its interests. Yet we must each be mindful that our actions can produce unintended consequences. Cooperation is a difficult path, but it is ultimately the path that is in the best interest of both nations.