Focuses on the influence of President Jiang Zemin's rise to power on the military machinery of China. Creation of People's Armed Police (PAP) as counterweight to People's Liberation Army (PLA); Jiang's military primacy; Effects of primacy to arms build-up; PLA's aggressive engagement to Spratly's island; Jiang's conciliatory efforts to Spratly's issue; Corruption of Pla's business empire.