It's no more double-speak than the claim that China's sub force and overall navy will eclipse our own in size within a decade. While that may be true, the vast majority of that fleet is well obsolete - even the newer vessels China is pumping out. The fact remains that only a small core of each of China's armed force sectors will be truly 'modern' even by 2020.
That's not to discount the idea of a wave of lower-tech vessels overwhelming a smaller force of higher-tech vessels, but it's not as dire as some would proclaim.
I believe that regardless of all that, we should not be shrinking the fleet, and it should see a minimum floor of 300 ships. There's an array of geoPOLITICAL - indirectly strategic - reasons for not shrinking the fleet further, which seems be missed by the Pentagon planners.