The Pentagon has released its new assessment of the Chinese military. In terms of aircraft development, China is developing the Chengdu J-20, it is bolstering its long range strike capability, airborne command and control capabilities, and it's interested in developing unmanned aircraft. The country is also set to have its first aircraft carrier in service, but it won't have a full air wing for some time yet...
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Meanwhile, the China's second J-20 has flown. Here is a video of that... It's pretty damn long (and not particularly riveting).
Also, in Congress, the House of Representatives has passed a measure requiring the Obama Administration to sell Taiwan at least 66 new F-16 fighters.
Read about it here