This is a cool report. I am going to read it as soon as I have a chance.
http://www.defenselink.mil/pubs/pdfs/China_Military_Power_Report_2009.pdf
On ASBMs:
p.21
[qimg]http://img263.imageshack.us/img263/4759/missilec.png[/qimg]
Analyses of current and projected force structure improvements suggest that China is seeking the capacity to hold surface ships at risk through a layered capability reaching out to the “second island chain.” One area of investment involves combining conventionally-armed anti-ship ballistic missiles (ASBMs) based on the CSS-5 (DF-21) airframe, C4ISR for geo-location and tracking of targets, and onboard guidance systems for terminal homing to strike surface ships. As described in an authoritative 2004 article for the Second Artillery Corps, the ASBM could employ “terminal-sensitive penetrating sub-munitions” to “destroy the enemy’s carrier-borne planes, the control tower and other easily damaged and vital positions.” This capability would have particular significance, as it would provide China with preemptive and coercive options in a regional crisis.
On conventional ballistic missiles for Taiwan deterrence and ASBMs:
From the executive summary:
Regional Conventional Strike. • Since 2000, China has continued its build-up of conventional ballistic missiles, building a nascent capacity for conventional short-range ballistic missile (SRBM) strikes against Taiwan into what has become one of China’s primary instruments of coercion, not only of Taiwan but of other regional neighbors. In 2000, China’s SRBM force was limited to one “regimental-sized unit” in southeastern China. China has expanded the force opposite Taiwan to seven brigades with a total of 1,050-1,150 missiles, and is augmenting these forces with conventional medium-range ballistic missile (MRBM) systems, such as the anti-ship ballistic missile, and at least two land attack cruise missile (LACM) variants capable of ground or air launch. Advanced fighters and bombers, combined with enhanced training for nighttime and overwater flights, provide the PLA with additional capabilities for regional strike or maritime interdiction operations.
On satellite navigation and guidance:
p.26
Navigation and Timing: China is pursuing multiple possibilities for satellite navigation independence. Currently, the PRC uses the U.S. global positioning system (GPS), Russia’s GLONASS, and its own BeiDou-1 (regional) systems for navigation. The BeiDou-1 system consists of three satellites and serves both civil and military purposes. The Beidou-1 system will be replaced by a BeiDou-2 system (expected to be operational in 2011) that will become a regional complement to the worldwide BeiDou-2/Compass system expected to be operational in 2015-2020.
Now, this could just be fear mongering from the DoD in order to convince congress to invest in more military capital despite Gates' stated preference for a more low-tech military. But there's probably
something to this.