While we're bogged down in the Middle East and in South Asia, China is busy getting their ICBM program together. Within a short while they'll have a missile that can reach New York. They can already hit Los Angeles. This presents problems if we ever have to help Taiwan defend itself.
China has already threatened that they won't let economic factors or the upcoming Olympics in Beijing prevent them from attacking Taiwan if it declares independence. The apparent re-election of Chen Shui-bian doesn't bode well for a smooth releationship with the People's Republic over the next four years.
Here's some info on China's defence posture:
China Nuclear Forces Guide
http://www.globalsecurity.org/military/ops/taiwan.htm
There was an interesting report on "The World" yesterday on this subject:
"Beijing is growing anxious over talk of independence for Taiwan and
Beijing's military arsenal is growing as well. A Chinese attack on
Taiwan could draw the United States into war. China's missiles, already
aimed at Taiwan, are powerful enough to reach America."
http://www.theworld.org/latesteditions/20040325.shtml
Some more background on the Taiwan/China problem from www.globalsecurity.org
http://www.globalsecurity.org/org/news/2004/040319-taiwan-china.htm
Remember when we were "very sorry" for the Chinese pilot that died in the EP-3 Spy Plane incident in April 2001? They got our most sophisticated spying platform and took it apart peice by peice. This makes us extremely vunerable. You think we had intelligence problems in Iraq? Well, this is much worse.
Too bad two thirds of our entire military is in the Middle East. We might not be able to "do what it takes" to defend Taiwan if China decides they've had it with president Chen.