By Francis Markus BBC correspondent in Shanghai

There has so far been little reaction from China to a US Defence Department report accusing Beijing of moving further away from peaceful reunification with Taiwan and towards more coercive strategies.

But Chinese leaders are likely to reject the allegation, arguing that what Washington calls coerciveness is in fact the deterrents to stop what they view as a renegade province from declaring formal independence

Maintaining the delicate status quo across the Taiwan Strait remains a complex balancing act

Chinese leaders can often be seen on state television arguing that Beijing has no choice but to deploy missiles along its coastline facing Taiwan.

They affirm that the aim is to stop the island from moving inexorably away from reunification with mainland China and towards formal independence.

It is an anxiety that has been sharpened since Chen Shui-bian of the historically pro-independence Democratic Progressive Party won Taiwan's presidency more than two years ago.

Deterrent

And it is this that is bound to shape the reaction in Beijing to the Pentagon report.

One academic whose thinking broadly reflects government views on the Taiwan issue said that what Washington views as coerciveness, Beijing regards as deterrents.

He said that although China did not intend to use force to compel Taiwan into reunification, the more Beijing perceived the island as moving towards formal independence, the more it would have to step up what he called deterrent measures.

Economic ties

China also argues that Washington is contributing to the military tension by its arms sales to Taiwan, which the Americans maintain are to defend the island against against attack by Beijing.

But while such military debates rage on, China and Taiwan are quietly pursuing ever-deepening economic contacts with investment from the island pouring into mainland projects.

They are also trying to explore ways of easing the restrictions on direct travel and communications between the two that have been in place at Taiwan's insistence for decades.

Maintaining the delicate status quo across the Taiwan Strait remains a complex balancing act involving the two players at political, military and economic levels.