2011 report to congress - U.S.-China Economic and Security Review ...

dkrause on DSKHT7XVN1PROD with $$_JOB283during a joint press conference that the PLA does not have anymissiles stationed ‘‘across from Taiwan.’’ 236 However, the U.S. Departmentof Defense in its congressionally mandated report on China’smilitary capabilities noted that ‘‘the PLA had deployed between1,000 and 1,200 short-range ballistic missiles to units oppositeTaiwan.’’ 237Several espionage cases alleging the transfer of Taiwan’s militarysecrets to China have reinforced Taipei’s suspicion of the mainland.In early February 2011, Taiwan Army Major General Lo Hsien-chewas arrested on charges of spying for Beijing since 2004. 238 Thiscase is considered by some to be Taiwan’s worst espionage case in50 years and raised concerns among U.S. officials when it was revealedthat details of sensitive U.S. technologies may have beencompromised. Documents found in Major General Lo’s office detailedinformation about Lockheed Martin’s Po Sheng command,control, and communications network being purchased by Taiwan,as well as the procurement details of 30 Boeing AH–64D LongbowApache attack helicopters. 239 In a second espionage case, a Taiwanbusinessman was arrested for allegedly trying to steal military secretsfor China, but Taiwan’s Ministry of National Defense deniedthat any national security information was lost. 240 These casesmay not be the end of Chinese espionage on the island, as an anonymousTaiwan source told the media that Taiwan knew of at leastten additional spies who had infiltrated Taipei’s national securityunits and that ‘‘[m]any more spies for the Chinese mainland mighthave gone undetected. . . . The extent of the infiltration into Taiwan’sgovernment units may be worse than imagined.’’ 241In order to show to both China and its own populace that it iscapable of defending the island against a mainland attack if necessary,the Taiwan military conducted several high-profile militarydemonstrations over the past year. These demonstrations included:• Military exercises: In April 2011, Taiwan’s Air Force conducteda high-profile highway landing drill of its fighterjets in a simulation of a surprise attack on Taiwan’s airbases. This was the first highway landing exercise thathad been conducted since 2007. 242 Analysts believe thatthis exercise was meant to send several signals: the firstto China in a display of its ability to improvise if its airfieldsare destroyed, the second to the United States inan attempt to convey to Washington the efficacy withwhich it would use requested fighter jets, and the thirdto Taiwan’s public in order to convince them of the MaAdministration’s commitment to defense. 243• Cruise missile developments: Over the past year, Taiwanannounced that it had begun producing two new cruisemissiles. In December 2010, Taiwan’s Deputy DefenseMinister Chao Shih-chang stated that Taiwan was massproducing the Hsiung Feng IIE, a land-attack cruisemissile under development since the late 1990s. 244 Withan estimated range between 500 and 650 kilometers, theHsiung Feng IIE is capable of hitting targets on China’smainland. 245 Deputy Defense Minister Chao also confirmedthat Taiwan had begun producing the HsiungFeng III, a supersonic antiship cruise missile. 246 In MayVerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00295 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464