China's total military spending in 2007 was estimated at between 97 and 139 billion US dollars, more than double China's declared budget of 45 billion dollars, according to the Pentagon's annual report released last week.
"This indicated that China had intentionally hid military spending that would allow it to boost deterrent and combat capabilities outside the mainland," Major General Hau Yi-chih told a press conference in Taipei.
Hau, head of the defence ministry's joint operation sector, said China was developing anti-satellite weapons, and cruise and ballistic missiles capable of striking aircraft carriers.
The weapons were "much more than China may need in solving the Taiwan issues" and have not only tipped the military balance in the Asia Pacific region but threatened the security of the other major powers in the world," Hau said.
China views Taiwan as a rebel province awaiting reunification, by force if necessary. The two sides split at the end of a civil war and the issue is regarded as one of Asia's most dangerous potential flashpoints.
As of November, China had between 990 and 1,070 short-range ballistic missiles deployed to garrisons opposite of Taiwan, as well as 490 combat aircraft within un-refuelled operational range of the island, according to the Pentagon report.
Taiwan's defence ministry in 2007 increased its military spending to 2.85 percent of GDP, up from 2.6 percent in 2006.