With China as the pacing challenge and a Chinese invasion of Taiwan as the pacing scenario, the U.S. Department of Defense (DoD) must balance operational effectiveness, force survivability, and escalation management as it considers its approach to prosecuting a hypothetical future conflict with China. As a result of China's secure second-strike nuclear retaliatory capability, the United States must now, more than ever, consider how to tailor its conventional military operations to avoid triggering Chinese nuclear first use. This report is part of a series exploring how the U.S. joint force could better balance military operational effectiveness, force survivability, and escalation management in a Taiwan conflict scenario. In this report, the authors consider the potential thresholds and drivers of Chinese nuclear first use in a Taiwan conflict scenario in the context of China's evolving nuclear force posture and ongoing nuclear buildup. Their overarching finding is that, in the event of a fully committed military conflict with China over Taiwan, nuclear escalation will always be a plausible scenario in which no amount of U.S. effort could reduce the risk of escalation to zero. As China's nuclear posture continues to evolve, the United States is now dealing with a China that has a survivable second-strike capability. This suggests that the United States must actively account for how China might interpret and respond to U.S. conventional strikes when planning its operations and be adequately prepared for dealing with Chinese nuclear first use.

Chinese leaders see themselves in competition with the United States to build military power in space. The ongoing development of U.S. and Chinese capabilities could lead to unstable competition in space, raising the risk of rapid, and perhaps unintended, military escalation. This report surveys open-source literature across the Chinese defense enterprise to present a composite image of People's Liberation Army (PLA) perspectives and key factors for U.S.-China crisis stability in space. It draws on authoritative materials, including leader speeches reported in official media, defense white papers, and official professional military education, which collectively reflect political leader guidance and PLA strategy and doctrine. The findings suggest that the PLA's thinking on escalation dynamics in space has become significantly more risk-tolerant than that found in PLA documents published just a decade prior. This shift emphasizes Xi Jinping's guidance to be more proactive in shaping the international environment, which includes accepting higher but carefully calibrated levels of risk even though such proactive measures might result in unintended escalation with the United States. This higher escalation tolerance is complicated by Chinese leaders' inflated threat perceptions of the United States and resultant policy approach that resists cooperating with the United States to arrest unintended crisis escalation.