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China said Tuesday that it faces threats from independence movements related to Taiwan, Tibet and the western desert region of Xinjiang, and that American arms sales to Taiwan jeopardize stability in Asia. The assessment came in a white paper on national defense released by the State Council, China's cabinet. The paper said that ''China's security situation has improved steadily,'' but that ''being in a stage of economic and social transition, China is encountering many new circumstances and new issues in maintaining social stability.'' [ABSTRACT FROM PUBLISHER]

The article reports that a Chinese military spy ring that focused on the Navy has been dismantled by Taiwanese prosecutors. It is inferred that the alleged leader of the spy ring inside Taiwan, retired Taiwanese Navy Lieutenant Commander Chian Ching-kuo, is only one of the co-conspirators expected to be indicted. Details of Chian's indictment are given.

The article reports on the renewal of the diplomacy between Taiwan and Mainland, China. The short-range missiles targeted at Taiwan and Beijing's refusal had made military to pledge and consider a renegade province. This is in association between the country's prosperous trade and investment relationship, which has meant so much in transfer of technological and managerial resources contributing to Mainland China's boom.