From the document:

Beijing presents a challenge to American interests across the domains of national power, but the military threat that it poses is especially acute and significant. China is undertaking a historic military buildup that includes increasing capability for power projection not only in its own region, but also far beyond as well as a dramatic expansion of its nuclear forces that could result in a nuclear force that matches or exceeds America’s own nuclear arsenal.

U.S. defense strategy must identify China unequivocally as the top priority for U.S. defense planning while modernizing and expanding the U.S. nuclear arsenal and sustaining an efficient and effective counterterrorism enterprise.

China is pursuing a strategic breakout of its nuclear forces, significantly shifting the nuclear balance and forcing the U.S. to learn how to deter two nuclear peer competitors (China and Russia) simultaneously for the first time in its history.

China and Russia, in addition to their vast and growing ballistic missile inventories, are deploying new hypersonic glide vehicles and investing in new ground-launched, air-launched, and sea-launched cruise missiles that uniquely challenge the United States in different domains.