"China is working hard to transform its Vietnam War-era defence establishment into a credible regional military power with a new generation of indigenous equipment, designed to thwart more advanced adversaries," said Jane's.

The People's Liberation Army (PLA) is now shifting into a high gear, through continuing to import Russian weapons, improving training and increasing its professionalism, it added.

"The centrepiece of this offensive capability is the PLA's potent missile force with the modernisation drive likely to allow the PLA to gain the upper hand in the military balance against Taiwan for the first time by the end of this decade," the magazine said.

Tensions between Taiwan and China have escalated in recent years. China considers Taiwan part of its territory and has repeatedly threatened to invade the island should it declare formal independence.

China's air force, navy and strategic missile forces head the queue in equipment funding priorities, while the once-dominant ground forces lag well behind, Jane's said.

While Chinese defence chiefs worry about the United States deepening its security ties with regional allies, the PLA is strengthening its links with Russia through arms sales and military exercises, said Jane's.

"Chinese acquisitions of Russian arms have also continued, with the next significant deal in the pipeline the Chinese acquisition of Sukhoi Su-33 multi-role fighter aircraft: a carrier version of the Su-27 fighter," it said.

"The two sides are reportedly in advanced negotiations over the deal and there is speculation that the PLA Naval Air Force is considering establishing a combat air wing to be deployed on a future aircraft carrier.

"The two countries are holding a second bilateral military exercise in Russia in July, in which China will reportedly send its F-10 fighter aircraft to participate for the first time."

Jane's added that the PLA Air Force was modernising its "aging" frontline arsenal as new generations of combat, surveillance and airborne early warning and command aircraft roll off the production lines from China's revitalised aviation industry.

Taiwan vulnerable to China missiles: defence ministry
Taipei (AFP) April 24 - A computerised drill showed that Taiwan is vulnerable to air attack from rival China due to insufficient anti-missile protection, the defence ministry said Tuesday.

In the five-day simulated operation last week, a massive ballistic missile attack was "launched" at Taiwan's military command, missile bases, radar stations and airports, the ministry said.

Most military personnel and weaponry installations survived the bombings in the scenario, Lieutenant General Chiu Kuo-cheng said.

But the attacks "caused grave damage to radar systems and airports ... due to the weakness of our anti-missile defences," he said.

The computerised drill was part of the war games codenamed "Han Kuang 23."

In an interview with CNN in January, Taiwan's President Chen Shui-bian accused China of provoking his government by targeting the island with nearly 1,000 missiles.

In reaction to China's continued missile build-up, Taiwan has deployed three US-made Patriot anti-missile batteries to defend the densely-populated Taipei area, and is seeking to purchase more.

The drill findings also indicated that China's "submarines had posed serious threats to Taiwan's warships," the ministry said, calling for further build-up of anti-submarine capabilities.

It confirmed that the United States had sent personnel to observe the simulation, which was staged in Taipei's Yuanshan command.

Taiwan's defence minister Lee Jye last month issued a stern warning against the growing military threat from China and said the island needed to buy more advanced weaponry.

Taiwan's opposition has repeatedly blocked a 10-billion-US-dollar arms deal even after it was scaled down from 16 billion dollars.

Tensions between Taiwan and mainland China have escalated since independence-leaning Chen was elected president in 2000.

China has repeatedly threatened to invade the island should it declare formal independence.

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