Analysts fear China's naval expansion may eventually nullify the US naval presence in the region.

Chen Yung-kang, an official from Taiwan's defense ministry, said the half-completed Russian-built carrier Varyag was currently being repaired in Dalian and would be ready for Chinese navy training purposes in six years, United Daily News and Apple Daily reported.

In addition, "the navy of the People's Liberation Army (PLA) plans to build an aircraft carrier of its own, which is scheduled to begin operation by 2020," Chen said.

Analysts say China would then have potentially two battle carrier groups to deter any US attempt to come to Taiwan's rescue, should war break out in the Strait.

China could also mobilize up to 50 submarines to blockade the island, which heavily relies on its maritime supply lines, Chen added.

"To counter the threat, Taiwan must operate a larger submarine fleet," he said. Taiwan's navy owns four submarines, two of which are Guppy-class, built in the 1940s.

Taiwan's opposition has repeatedly blocked a controversial 10-billion-dollar arms bill, even after it was scaled down from an original 16 billion dollars.

The arms bill called for the purchase of eight conventional submarines and 12 P-3C aircraft. Six PAC-3 Patriot anti-missile systems, as well as upgrades of the existing three PAC-2 Patriot systems included in the original bill, would be financed by the government's yearly budgets.

The PLA struck nerves in the region in 1996 when it lobbed ballistic missiles into shipping lanes near Taiwan's two harbours to intimidate Taiwanese voters not to vote for the independence-leaning president Lee Teng-hui, seeking another four-year term.

Washington sent two carrier groups to waters off Taiwan in an apparent warning to Beijing not to take further military action against the island, which Beijing regards as part of its territory awaiting to be reunified, by force if necessary.

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