China has been using coercive tactics to pursue territorial and maritime claims in the South and East China Seas as well as along its border with India and Bhutan, the Pentagon said on Tuesday.

“China’s leaders use tactics short of armed conflict to pursue China’s objectives. China calibrates its coercive activities to fall below the threshold of provoking armed conflict with the United States, its allies and partners, or others in the Indo-Pacific region,” the Pentagon said in its annual report on China to the Congress.

China has been expanding military and economic influence in the Indo-Pacific region, triggering concerns in various countries of the region and beyond.

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“These tactics are particularly evident in China’s pursuit of its territorial and maritime claims in the South and East China Seas as well as along its border with India and Bhutan,” said the report titled ‘Military and Security Developments involving the People’s Republic of China 2020’ that was released by the Pentagon.

China claims almost all of the South China Sea while Vietnam, the Philippines, Malaysia, Brunei, and Taiwan also claim parts of the region.

Beijing has built up and militarised many islands and reefs to control the area. The South and East China Seas are said to be rich in minerals, oil, and other natural resources and are vital for global trade.

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In recent years, the People’s Liberation Army (PLA) has also increased patrols around and near Taiwan using bomber, fighter, and surveillance aircraft to signal Taiwan. China also employs non-military tools coercively, including economic tools during periods of political tensions with countries that Beijing accuses of harming its national interests, the report said.