China is moving from a large military traditionally composed of conscripts to a modernized smaller and more professionalized armed force. What is the reason behind this transformation and its goals? How is this military transition, modernization, and professionalization affecting China s Special Operations Forces (SOF) and their capabilities? This paper will look at China s military modernization and its shift from a traditionally large conscript force to one that is smaller, more professionalized, and able to win local wars under high tech conditions. Specifically, the focus will be China s SOF and how modernization and professionalization are affecting them and their capabilities. It will analyze the implications Chinese SOF modernization will have for the region, how they might be employed, and what this will mean for the nations the US has bi-lateral agreements with, especially Taiwan. The conclusion will include some observations and recommendations on how the US might counter these efforts as it develops a strategy to support the policy rebalance to the Pacific.