On one hand, I would be building a blue water navy if I were the Chinese. They are so reliant on trade and oil imports that ensuring the free flow of ships, particularly at crucial points like the Strait of Malacca, is a national interest. On the other hand, this capability also threatens Taiwan and American naval hegemony.
Well, Chinese navy had a 60th birthday party.
The Economist:
WITH an unprecedented display of its rapidly growing naval armoury, China has flaunted its ambitions as a global power. To mark the 60th anniversary of the founding of the People’s Liberation Army Navy (PLAN), Chinese leaders on April 23rd reviewed a maritime parade of hardware ranging from nuclear submarines to amphibious assault-craft and fighter bombers. The only missing ingredient of naval might was an aircraft-carrier. Officials hint it will not be long before China has some of these too.
Strategy Page posted this video of the festivities the other day:

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