The report, citing military intelligence, also found that China is adding ballistic and cruise missiles to its arsenal at a rate of 75 to 100 per year.

While the exact targets in Taiwan are unknown, the MND believes the guidance system has been upgraded to allow Chinese missiles to strike within 40 meters of their intended targets.

The Chinese navy has also boosted its combat capability by remodeling and refitting its battleships.

Despite China’s military buildup, the report found that the likelihood of an unprovoked attack by China remains low, adding that for the time being Beijing will continue to closely monitor the development of Taiwan’s foreign policies and political environment.

In response to the rapid buildup of Chinese military power and increasing threat to the stability of the Taiwan Strait area, the U.S. has intensified military cooperation with Japan , Australia and India as well as initiating joint military exercises in the Asia-Pacific region.

China retook Taiwan after Japan returned the island to the then Kuomintang (KMT) administration at the end of World War II in 1945. Since the KMT government moved its capital from Nanjing to Taipei in 1949 following its defeat to the Chinese communists in a civil war, China has regarded Taiwan as part of its territory.

Beijing has repeatedly threatened to attack Taiwan should politicians in Taiwan declare formal independence from China . Tensions between Taiwan and China have recently escalated due to pro-independence President Chen Shui-bian’s bid to join the United Nations under the name of Taiwan.

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