The two countries have agreed to hold working-level meetings as part of steps to revise a memorandum of understanding signed in 2011 aimed at enhancing defence industry cooperation.

US-led joint missile defence measures have been a sore point with China, which retaliated economically against South Korea's 2016 decision to host a US military Terminal High Altitude Area Defense battery.

Taiwan vows to defend itself and has made strengthening its defences a priority, with regular military and civil defence drills.

The computer-aided simulations included potential shooting down of US missile-tracking satellites, satellite jamming, and other electronic warfare 'effects' that are possible tactics in space warfare.