The document discusses challenges facing US interests in the Asia-Pacific region. China is rapidly modernizing its military with over 60 submarines, thousands of missiles, and 2.3 million personnel. North Korea has conducted two nuclear tests and three long-range missile launches since 2006 and attacked South Korea twice. At the same time, planned US defense budget cuts could reduce American presence and influence. The document recommends enhancing US presence, forcing China to invest more in defenses, and convincing China it cannot win a regional war quickly to protect American allies and interests in the region.