The US announced that China had increased its production of short range ballistic missiles aimed at Taiwan. These are DF-15 missiles, weighing 6.2 tons, with a range of 500 kilometers and carrying a one ton, non-nuclear,  warhead. These missiles are thought to be aimed at Taiwanese air, naval and army bases and would be used for a surprise attack (in order to do maximum damage) if China decided to take Taiwan by force. China is said to be producing 75 DF-15 missiles a year now. The US government military analysts also said that China may be spending three times it's declared defense budget of $20 billion. This has long been a common ploy with communist nations, understating defense spending. In any event, the US expects China to continue increasing defense spending, effectively doubling their defense spending between 2000 and 2005.