Li, the chief of general staff, replaced Tang Yao-ming who resigned for health reasons, government spokesman Lin Chia-lung told reporters.

Tang was defense minister under President Chen Shui-bian's Democratic Progressive Party (DPP) administration since 2002. He was a high-ranking military officer under the previous Kuomintang (KMT) government, which lost power in 2000.

Analysts said the appointment of Li, 64, was significant as Taiwan is beefing up its navy, including by acquiring four US-built Kidd class destroyers and planning to build a fleet of eight conventional submarines.

China regards Taiwan was part of its territory, even though they split in 1949 at the end of a civil war.

Beijing has repeatedly threatened to invade Taiwan if it declares independence. It fears that Chen, who was reelected in March although the ballot is being recounted, could make irreversible moves towards independence.

WAR.WIRE