AP Photo

Despite more than a year of unprecedented warming relations between Taiwan and mainland China, Beijing's continuing military build-up and Taiwan's purchase of more arms from the United States indicate that direct flights, gifts of pandas, a flood of mainland tourists to Taiwan and soon a free-trade agreement between the two sides have yet to ease military tensions across the strait.

The potential for war between the two long-time rivals - a flashpoint in the region - still very much exists, as indicated in Taiwan's views of the military situation highlighted in the island's recently released defense report.