China is building its first aircraft carrier. As Yglesias says:
News that China may be in the midst of building its first aircraft carrier is a reminder both of China’s rising geopolitical clout and also the reminder that they remain quite a bit behind us.
"Quite a bit" is an understatement, of course.
Yglesias also points to this very good article by Rob Farley on why a U.S.-Japan-India coalition to balance against China may not be a good thing, even if its inevitable. It's gated for non-subscribers, but those with institutional IDs (i.e. students) should be able to get access.