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The report "NATO 2030", prepared by a group of so-called 'wise persons' and containing 138 proposals, comes amid growing doubts about the purpose and relevance of an alliance branded last year by French President Emmanuel Macron as "brain dead".
From anger over Turkey's decision to buy a Russian weapons system to U.S.
doubts over Europe's commitment to its own defence, NATO - founded in 1949 to contain a military threat from the Soviet Union - has also faced calls from Trump to do more in the Middle East.
However, Eastern European allies, fearful of Russia since Moscow's 2014 annexation of Crimea from Ukraine, are concerned about shifting too many resources away from NATO's core task of defending Europe.
His mother is half Japanese, his wife is Japanese and by coaching the Asian nation to their historic victory over South Africa at the 2015 World Cup, he catapulted himself into position to take his current job.
The report, whose recommendations are not binding, says NATO must also find a way to stop individual countries vetoing policy decisions, as Hungary has done over plans for a deeper partnership with non-NATO ally Ukraine, and Turkey with Israel.
NATO should consider including China in NATO's official master strategy document, its "Strategic Concept", diplomats cited the report as saying, though it will stop short of declaring the country an adversary.
Part of NATO's response should be maintaining a technological advantage over China, protecting computer networks and infrastructure, the diplomat said, citing the report, although not all recommendations will be adopted.
On the day before Thanksgiving, Trump pardoned former National Security Advisor Mike Flynn, who had pleaded guilty to lying to the FBI about his Russia contacts, then sought to withdraw the plea in court.
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"Where NATO faced one big threat in the Cold War ... today it faces two systemic rivals, the enduring threat of terrorism, instability along NATO's southern periphery," the report by a group of experts said, referring to China and Russia.
Trump has granted clemency to supporters before, most notably earlier this year when he commuted the criminal sentence of Roger Stone, who was sentenced to prison after being convicted of lying under oath to lawmakers.
"China is no longer the benign trading partner that the West had hoped for. It is the rising power of our century and NATO must adapt," said one NATO diplomat who has seen the report, pointing to Chinese activity in the Arctic and Africa and to its heavy investments in European infrastructure.
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