kung said that apart from taking care of its own defense needs, Taiwan had to seek peace with China through negotiations. He did not elaborate. The Pentagon report said the short-term focus of China's military is to prepare for potential conflict in the Taiwan Strait. China claims Taiwan as part of its territory and has threatened to invade if the self-ruled, democratic island declares formal independence or resists Beijing's insistence on negotiating unification. The two sides split amid civil war in 1949. The United States, Taiwan's main arms supplier, has cautioned the sides not to force a change in the status quo, fearing that it might be dragged into an armed confrontation in the western Pacific. Chen and Chinese leaders often trade harsh words, with Beijing accusing the Taiwanese leader of moving the island closer to formal independence. Earlier this year, China feted three Taiwanese opposition leaders who support eventual unification with the mainland. Taiwan has been trying for months to pass a special appropriation bill to finance a US$15.3 billion arms package from the United States, but the opposition-controlled Legislature has balked, calling the measure unnecessary and too expensive for the island to afford.