The reformist and open policy which Beijing adopted in late 1978 has transformed the overall structure of Chinese economy, society as well as its military. It is because of the success of this that China moved from an agrarian under-developed country to become the world’s factory. Its growth has made China the second largest global economy. The economic transformation has entailed significant investments in military modernisation and pursuit of advanced defence technology. Economic growth and military prowess have enhanced China’s comprehensive national power, making it increasingly assertive in dealing with the world, especially its immediate neighbourhood.