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China’s rapid military modernization “has the potential to reduce core U.S. military technological advantages,” the Pentagon said in its annual report on that nation’s military strategy.

One example cited in the report is China’s “extraordinarily rapid” development of its conventionally armed missile capabilities. China has been fielding a variant of its DF-21 medium-range ballistic missile with a maneuverable warhead that has the capability to attack aircraft carriers in the western Pacific, the report said.

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