US: China buildup continues

China continues its huge military buildup opposite Taiwan, further pushing the balance of power between the two rivals toward the mainland's favor, the U.S. Defense Department says in its annual report on China's military.

Although the Taiwan Strait remains stable, China is adding more than 100 missiles a year to the estimated 1,000 it has targeting the democratic, self-governing island that Beijing claims as its own, the report found. Hundreds of thousands of troops are based opposite Taiwan, it said, and hundreds of planes are ready to make good on China's threat to attack should Taiwan formalize its de-facto independence.

"A potential military confrontation with Taiwan, and the prospect of U.S. military intervention, remain the PLA's most immediate military concerns," the report said, referring to the People's Liberation Army, China's military.

After the report's release, Chinese President Hu Jintao condemned Taiwanese independence moves as a threat to China's sovereignty in unusually strong remarks. Hu's comments Tuesday come just weeks ahead of Taiwan's presidential election.

The U.S. report said China is deterred "on multiple levels" from invading Taiwan. It warned that a war would lead to international sanctions, damage China's economic development, destroy relations with the United States and taint Beijing's coming Summer Olympics.

Wang Baodong, spokesman for the Chinese Embassy in Washington, said China "practices defensive policies" and pursues a "peaceful development route." He said China consistently opposes to the U.S. Defense Department reports as "interference in China's internal affairs and a reflection of typical Cold War thinking."

On Taiwan, he said the island "is an integral part of the Chinese territory, and China, as a sovereign state, has the right to conduct necessary defense-building for the purposes of safeguarding national security and territorial integrity." he said.

Also Tuesday, Beijing announced a nearly 18 percent boost in defense spending. The increase in military spending this year to nearly $59 billion is the 18th double-digit percentage increase in 19 years. Washington called for Beijing to more clearly explain its reasons for the jump in spending.

China insists that its multibillion-dollar military buildup is defensive.

The report comes as U.S.-Chinese military ties have been becoming warmer. Last week, China agreed to allow access to sensitive records on American servicemen missing since the 1950-53 Korean War. The two countries also agreed to set up a military hot line for communicating in emergencies.

The U.S. closely watches the Taiwan Strait and, as Taiwan's closest ally, has hinted it would go to war to protect Taiwan if nuclear-armed China should attack.

The report said that China is working to contain and prevent moves by Taiwan toward independence, "rather than seeking a near-term resolution."

But the situation remains delicate. A "perceived shift in military capabilities or political will" by either side could "cause Beijing to calculate its interests, and its preferred course of action, differently," the report said.

Hu's condemnation of Taiwan independence marked a break with the recent practice of top Chinese leaders to soft-pedal nationalist sentiment to avoid alienating Taiwanese voters. The decision to speak out appears to indicate Beijing's patience is being sorely tested by Taiwanese President Chen Shui-bian's attempts to strengthen Taiwan's de-facto independence.

The U.S. report found that Taiwan has reversed a recent trend of declining defense spending and has begun modernizing equipment and improving training.

China, though, has the "the most active ballistic missile program in the world" and had between 990 and 1,070 short-range ballistic missiles in its garrisons opposite Taiwan by November of last year, the report found.

China has nearly 500 combat aircraft able to reach Taiwan and has airfields that can handle hundreds more; about 400,000 troops were said to be based opposite Taiwan.