The memorandum conclusion ceremony, which took place in the southern port city of Kaohsiung, was attended by Taiwan's President Tsai Ing-wen and Defense Minister Feng Shih-Kuan.
The construction of submarines is the most challenging aspect of Taiwan's policy to create an independent national defense industry. This policy involves not only the Navy, CSBC, and NCSIST, but also the government, the military and relevant industries, according to the same reports citing Tsai.
Last week, the Taiwanese Defense Ministry released the report, which included plans to build up the country's military.
In June 2016, Beijing, which does not recognize Taiwan’s independence, cut off the diplomatic contact with Taipei, citing Tsai’s refusal to endorse the concept of a single Chinese nation. The relations between both countries deteriorated further in the beginning of 2017 as a result of Tsai’s contacts with US officials, including the newly elected President Donald Trump.