In return for China's cancellation of a military exercises near Taiwan, Taiwan has done likewise. On the other hand ex-President Jiang Zemin, still head of China's military, called for improvement's in China's weaponary because it is an important strategic task that will impact the country's lasting peace and stability. He also urged full preparation for winning a fight on the basis of existing weapons, improving the overall combat capability of military units and making preparations against war. It is hard to decide what to read into that: is it Jiang Zemin's attempt to re-assert his authority over the PLA and improve his standing over President Hu Jintao? Is it a deliberate racheting up in China's anti-Taiwan rhetoric? Most likely a combination of both.