China's accelerated military development and recent activity by its military aircraft and ships around Taiwan pose an increased threat to the self-ruled island, according to a Taiwanese government defense report draft reviewed by Reuters.

The 2017 Quadrennial Defence Review (QDR) also highlights the uncertainty over the future strategic direction of the United States in the region, the impact of Japan flexing its military capabilities and "conflict crisis" potential in the disputed South China Sea.

"The recent activity of Chinese jets and ships around Taiwan shows the continued rise in (China's) military threat capabilities," highlighting the importance of Taiwan's need to defend itself, the review will say.