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A Chinese attack on Taiwan is not imminent, the top US general says, but the US is watching "closely".
China is clearly developing the capability to strike at some point, but deciding to do so would be a political choice, General Mark Milley told the BBC .
China says Taiwan is a breakaway province that should be reunited with the mainland, by force if necessary.
It has accused the US of supporting Taiwan independence and vowed to "resolutely push back" any such attempts.
Recently there has been a marked escalation between China and the US, Taiwan's most powerful ally.
China has sent many warplanes into Taiwan's air defense zone, while the US has sent naval vessels into Taiwan's waters.
In May, US President Joe Biden said China was "flirting with danger" by flying its warplanes close to Taiwan. He vowed to defend the island militarily if attacked.
Beijing hit back by accusing the US of "violating its promise to Taiwan" and "interfering" in China's affairs, adding that the country "would not hesitate to fight" to prevent Taiwan from formally declaring independence.
Asked if he thought China would attack Taiwan, General Milley said:
Can, should, will, those are the key words there. In terms of capabilities, I think China is clearly developing a capability. President Xi has mentioned that in public forums, he has mentioned it in speeches, that he has challenged the PLA [People's Liberation Army of China] to develop the ability to attack. Taiwan at a moment in time.
And whether they like it or not, it's a political choice, it's a political choice, that will be based on how the Chinese see the benefit of the cost risk at that time.
There is no indication or warning of anything imminent at this time. But again, we watch it very, very closely.
The US has no formal diplomatic ties to Taiwan, but sells arms to Taiwan as part of the Taiwan Relations Act, which says the US must provide the island with the means to defend itself.
At the same time, it maintains formal ties with China and also diplomatically accepts China's position that there is only one Chinese government.