Looks like cuts in the military, similar but larger in size to those the UK have already had whilst maintaining a quality effectiveness should the requirement to act become a reality.
The Chinese don't appear all that concerned....simply biding their time I should imagine.
Quote:
China's state media have warned the US against "flexing its muscles" after Washington unveiled a defence review switching focus to the Asia-Pacific.
In an official news agency Xinhua said President Barack Obama's move to increase US presence in the region could come as a welcome boost to stability and prosperity.
But it said any US militarism could create ill will and "endanger peace".
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http://www.bbc.co.uk/news/world-us-canada-16438584