Modern Chinese ships are respectable in terms of size and capabilities. However, they are still inferior in size and capabilities to the equivalent american ship.
China's submarine capabilities are becoming far more capable with nuclear powered subs.
China will have four Type-094s submarines and two next-generation Type-096 submarines by the year 2020. The advanced nuclear-powered attack and ballistic missile submarines, according to Focus Taiwan News, citing Russian Military Observer, can carry 80 sea-based intercontinental ballistic missiles and 250 to 300 nuclear-armed missiles.
EU firms have been helping China's naval modernization by supplying new ship engines. German-designed engines chosen for their low noise levels power virtually all non-nuclear Chinese submarines and several classes of Chinese frigates deployed in the South China Sea, where Beijing has a host of territorial disputes, analysts say.
Citing the co-production deal signed in France, Chang said: “China uses the name of civil purchase to purchase French helicopter engines, and they shift those engines into military helicopters.”
Various cruise missiles and anti-ship missiles in China''s arsenal are a concern to the US Navy.
A Chinese website stated that the PLAN is going to build a 110,000 ton aircraft carrier, essentially a larger version of the Liaoning. Other sources report new carriers would have an an overall length of 320 meters and a planned displacement of 85,000 tons.
China is building several Type 052C destroyers and seven more Type 052D destroyers. The Type 052C, a guided-missile destroyer, resembles the US Navy's Arleigh Burke-class destroyer.
SOURCES - Congressional report, Wikipedia, Defense news, wall street journal