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Beijing - China is to hold a major air raid drill in Shanghai, the likely target of Taiwan missiles in the event of conflict, a sign the country's leadership still views war as a possibility with the island it claims as its own.
Saturday's drill will coincide with a rally in Taiwan's Kaohsiung city at which the ruling Democratic Progressive Party will try to mobilise a million people to demonstrate support for the island's frustrated bid for membership of the United Nations.
Taiwan President Chen Shui Bian plans a referendum next March on its UN bid, which - if passed - Beijing would see as a formal declaration of independence.
Chinese academics have said China would be forced to react, possibly militarily, if the referendum was passed even though the UN bid is doomed due to an absence of diplomat support.
Taiwan is recognised by only 24 countries, compared with 170 for China.
In Sydney last week, Chinese President Hu Jintao told US President George W. Bush that the next two years would be a period of "high danger" in the Taiwan Strait.
But China, which will host the Olympics next August, wants to avoid a conflict and has turned to the US to try to rein in Taiwan's pro-independence leaders.
- Reuters