The announcement came after Taiwan said for the first time last week that it is capable of launching missiles at China as it warned of an increased invasion risk.
China still sees Taiwan as part of its territory to be brought back into its fold, by force if necessary, even though the island has been self-governing since the two sides split after a civil war in 1949.
Ties have worsened since Beijing-sceptic President Tsai Ing-wen took power last year, ending an eight-year rapprochement.
The DF-16 (Dongfeng 16) is capable of precise strikes against Taiwan and has been deployed by the Rocket Force of the People's Liberation Army, defence minister Feng Shih-kuan said.
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