I look at china like this, they have 95% of the of the worlds
knowledge of advanced weaponry\communications systems. They have 200% the workforce needed for production, 50% materials and 50% of the energy they desire to feel secure enough to repel USA which is exactly what Chinas military is being built around.
1999 Lt. Gen. Patrick M. Hughes, then-director of the Defense Intelligence Agency testified to the Senate Armed Services Committee concerning Chinas navy
These select forces will have achieved a reasonably high level of proficiency in 1980s-style maneuver warfare by 2010. They will be well equipped with theater-range missiles, "late Cold War equivalent" tanks and artillery, more advanced diesel and third-generation nuclear-powered submarines, and approximately 20 new surface combatant warships.
I would also venture to say that China has some secrets of it's own.
This to complimant the 270,000 men and women of the The People's Liberation Army
Navy(PLAN).
All this about the navy doesn't look too fantastic when compared with that of the US but the navy imo is the least crucial aspect of Chinas military machine. China could increase it's standing armed force of 3+ million tenfold in short order. The fact is that the mainland could exponentially increase it's force simply by promising to feed recruits to the point that there would be no way of repelling them from a march into the middle east(to meet their energy needs) short of nuclear arms. Also marching on Taiwan doesn't require a cutting edge navy as it's less than 100 miles across the Taiwan straight. In this scenerio ground-based defenses would be more than adequate.
imo China simply does not require a navy to compete with ours as there's nowhere aside from Taiwan or the middle east that they would wish to go.
Concerning Taiwan, i don't believe China will make an offensive move however they will take "defensive" measures if Taiwan does anything too radical. On the other hand Taiwan has done everything
but declare formal independence and that is the one thing that the mainland will not accept. Would we defend Taiwan? Yes. Ultimately the entire thing would turn out to be a bloody mess.