Pretty scary since the article says:

Among the failures highlighted in the study are:
•China's development of a new long-range cruise missile.
•The deployment of a new warship equipped with a stolen Chinese version of the U.S. Aegis battle management technology.
•Deployment of a new attack submarine known as the Yuan class that was missed by U.S. intelligence until photos of the submarine appeared on the Internet.
•Development of precision-guided munitions, including new air-to-ground missiles and new, more accurate warheads.
•China's development of surface-to-surface missiles for targeting U.S. aircraft carrier battle groups.
•The importation of advanced weaponry, including Russian submarines, warships and fighter-bombers.

It appears that was has been "missed" was the major naval builup by the Chinese Navy.