China's armed forces can "paralyze" Taiwan's defenses and are able to fully monitor its deployments, the island's Defense Ministry said, offering a stark assessment of the rising threat posed by its giant neighbor.

Beijing is stepping up military activities around the island, which it views as Chinese territory. It has never renounced the use of force to bring democratic Taiwan under its control.

In its annual report to parliament on China's military, a copy of which was reviewed by Reuters, Taiwan's Defense Ministry presented a far graver view than it did last year, when the report said China still lacked the capability to launch a full assault on Taiwan.