China is on track to double the size of its nuclear warhead stockpile as it looks to expand military bases that are capable of conducting global operations, or attacking the United States, the Pentagon warned Tuesday in a report to Congress. China already possesses the world’s largest navy.

A “permanent condition of military inferiority is anathema” to China’s leadership and that is most obvious in its naval build-up, Chad Sbragia, deputy assistant secretary of defense for China, said during a Tuesday American Enterprise Institute forum. He also said it is the first time that U.S. intelligence has made public the numbers of Chinese warheads.

China currently has a warhead stockpile in the “low 200s,” consisting of many silo-based and road-mobile intercontinental ballistic missiles. China plans to expand its capabilities to include land-based missiles, missiles fired from submarines and bombers. They also plan to introduce new systems to counter American ballistic missile defenses.

“Over the next decade, China will expand and diversify its nuclear forces, likely at least doubling its nuclear warhead stockpile,” states the report.

China’s planned stockpile of over 400 warheads would still be easily dwarfed by the U.S. stockpile of 1,550 warheads. China appears to be changing its strategy away from being the first to launch nuclear weapons, and pivoting to a “launch-on-warning” strategy, where Beijing would fire nuclear missiles based on alerts of an incoming nuclear attack, says the report.

The nuclear buildup involves “new processes, tools and capacities” to reach more than 400 warheads, said Sbragia. “So this is not just the end product itself; it’s about the entire infrastructure to do so.”

According to the Pentagon, China long-term goal is to develop a “world-class military” by 2049. China has stated in a defense white paper from 2019 that they see the United States as the “principal instigator” of global instability.

Sbragia told reporters that “China’s national strategy” is to develop a military that is equal to, or superior to, that of the United States.

China is looking to expand its only overseas military base in Djibouti and is considering adding base sites, potentially  in Myanmar, Thailand, Singapore, Indonesia, Pakistan, Sri Lanka, the United Arab Emirates, Kenya, Seychelles, Tanzania, Angola and Tajikistan.

“A global PLA military logistics network could both interfere with U.S. military operations and support offensive operations against the United States as the PRC’s global military objectives evolve,” the report said.

“I am totally underwhelmed by this product,” retired Navy Capt. Jim Fanell told The Washington Times of the report. Fanell said it omits important details and understates China’s buildup. “How is it that the Trump administration’s third [Defense Department] report on the PLA looks no different than the Obama administration’s reports?”