China has announced a double-digit increase in military spending and has issued a strong warning to Taiwan.  Jamila Trindle reports from Beijing.

Soldiers from China's People's Liberation Army's (PLA) 196th infantry brigade (file photo)

China has announced plans to increase military spending by almost 18 percent, to more than $58 billion dollars for 2008.   National People's Congress spokesman Jiang Enzhu says most of the increase will cover higher prices and rising salaries. 

"China's military capability is solely for the purpose of safeguarding independence, sovereignty and territorial integrity, and it will not pose a threat to any country," he said.

Jiang also warned Taiwan against holding a referendum on membership in the United Nations, saying Beijing sees that as a possible step toward independence.