TAIPEI : Taiwan said Tuesday it was "closely monitoring" China`s arms build-up following a US government report warning that China`s military advantage over the island was growing.

"China has not given up the use of force against Taiwan, and we are closely monitoring China`s military developments. We ask the public to be rest assured," defence ministry spokesman Yu Sy-tue told AFP.

In an annual report to Congress, the Pentagon said Monday that China`s military build-up against Taiwan has "continued unabated" despite improving political relations.

"The balance of... military forces continues to shift in the mainland`s favor," the report said.

The report covered developments in 2009, before the United States approved a 6.4 billion-dollar arms package for the island in January.

China considers Taiwan, where the mainland`s defeated nationalists fled in 1949, to be territory awaiting reunification, by force if necessary.

However, ties have improved markedly since Taiwan`s President Ma Ying-jeou took office in 2008 on a Beijing-friendly platform.

Ma has said that the island will not engage in an arms race with China, despite the threat it poses.

BDST: 1106 HRS, August 17, 2010