Taiwan has held a military parade on its national day for the first time in 16 years.

Taipei stopped military parades in 1991 in efforts to improve relations with China and prove its transition to democracy.

In a speech to the parade President Chen Shui-bian criticised what he called China's "relentless military build-up" and insisted Taiwan would continue its efforts to join the UN.

Correspondents said the parade was meant as a show of strength aimed at deterring any possible Chinese attack.

Taiwan unveiled two domestically-developed missiles during the parade - one a ship-to-ship model, the other an anti-tactical ballistic missile.

The Hsiung-feng III and Tien-kung III missiles were on display, although another model said to be able to reach Chinese mainland did not appear.

Mr Chen wants to hold a referendum on Taiwan joining the UN in March, when presidential elections are scheduled.