A U.S. advisory commission released a report on Wednesday warning that China's growing military might make it more likely to use force to pursue its interests and pushed for a government probe into how far outsourcing in China has weakened the American defense industry.
The annual report of the U.S.-China Economic and Security Review Commission noted increasing threats to U.S. national security from Chinese spying, including infiltration of American organizations, and called on Congress to prevent Chinese state from acquiring control of U.S. firms.
The release of the report to Congress comes a week after Donald Trump won the U.S. presidential election. Trump, an outspoken Republican who has promised to take a stronger stance on trade and security issues with China than the incumbent President Barack Obama, will take office on Jan. 20.
The commission is a bipartisan body established in 2000 to monitor the effects of U.S. trade and economic dealings with China towards national security and make recommendations to Congress for legislative and administrative action.
Its report also urged American lawmakers to lend its support towards increased U.S. Navy freedom-of-navigation operations in the South China Sea, one of the world's busiest trade routes where China's construction of artificial islands with military installations has raised concerns about future freedom of movement. Beijing and neighboring countries have competing claims in the region.
The panel also noted the ongoing reforms of the People's Liberation Army and the upcoming completion of China's first locally made aircraft carrier.
"China's pursuit of expeditionary capabilities, coupled with aggressive trends that have been displayed in both the East and South China Seas, are compounding existing concerns about China's rise among U.S. allies and partners in the greater Asia," the report said.
"Given its enhanced strategic lift capability, strengthened employment of special operations forces, increasing capabilities of surface vessels and aircraft, and more frequent and sophisticated experience operating abroad, China may be more inclined to use force to protect its interests," it said.
The commission said that Washington's responses to the threat of Chinese intelligence gathering had suffered from a lack of coordinated effort by U.S. intelligence agencies.
It urged Congress to also direct the U.S. Government Accountability Office to prepare a report "examining the extent to which large-scale outsourcing of manufacturing activities to China is leading to the hollowing out of the U.S. defense industrial base."
"This report should also detail the national security implications of a diminished domestic industrial base, compromised U.S. military supply chains, and reduced capability to manufacture state-of-the-art military systems and equipment," it said.
The commission's report also recommended Congress to call on the U.S. State Department to promote educational materials to U.S. citizens going to China to the dangers of recruitment efforts by Chinese agents.