China could begin construction on its first "fully indigenous" aircraft carrier this year and deploy the new warship by 2015, the Pentagon reports in its new assessment of Beijing's military power which concludes that the People's Liberation Army is on track to field a "modern, regionally focused military by 2020." China's military modernization efforts — fueled by a defense budget that has grown over the last decade at an average of more than 12 percent, according the report - are a source of concern to the Pentagon, despite Beijing's relatively new contributions to international cooperative efforts such as peacekeeping, counter-piracy, humanitarian and disaster relief operations. "The pace and scope of China's sustained military investments have allowed China to pursue capabilities that we believe are potentially destabilizing to regional military balances, increase the risk of misunderstanding, and miscalculation and they contribute to regional tensions and anxieties," Deputy Assistant Secretary of Defense for East Asia Michael Schiffer told reporters yesterday.
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