Embarked on a major military buildup, China earlier this year increased defense spending by 17.7 percent, the largest increase in real terms in two decades. Much of this buildup has focused on developing the capabilities needed should Beijing's 50-year desire of reuniting Taiwan with the mainland come to blows. In light of that buildup, Taiwan's newly approved American weaponry will worry Chinese military planners because the weaponry could shift the military balance toward Taiwan. The eight diesel submarines the United States has agreed to help finance from a third party will prompt a Chinese response. One of the People's Liberation Army Navy's modernization thrusts has been in undersea warfare.
Submarines are a critical component of Beijing's anti-access strategy in the Taiwan Straits.
But when Taiwan will take possession of these submarines remains unclear. The U.S. arms package stipulates they will be built and delivered when Taiwan has the port facilities and operational training to support them. Moreover, Germany, one of the primary potential sources for the diesel submarines, may not be so willing to build them for Taiwan over Chinese objections. The submarines are not the only threat to China's growing undersea fleet. The Kidd-class destroyers lack the capabilities of the Aegis radar and do not have the ability to launch Standard air defense missiles from vertical launch tubes.