The Information Office of China's State Council published the China's National Defense in 2006, the fifth of its kind since 1998, on Dec. 29, 2006. In order to understand and analyze the defense white paper further, also to get an overall understanding of the four previous editions, this article intends to make comparative analyses of the defense white papers, and by cross-examining the main contents and thinking logic, hopefully to induce the trend of China's defense policy and the potential threat China imposes on Taiwan based on broad scope of view. Overall assessing, although the white paper is relatively transparent in 2006, it still leaves many questions about force composition and military spending unanswered, thus difficult to eradicate the doubts of ”China's rising as a threat” by the surrounding countries.