Since the PRC comducted missile tests close to Taiwan's south-western coast on the 21th of July 1995, Taiwanese have become frightened by Chinese military exercise. Because Taiwan's military defense system has reshown an inability to take effective counter meansnes, the psychological influence on society has led to an impact greater than the actual military threat to a degree strong enough to damage Taiwan's politics and economy. However, the PRC's ballistic missile capability is as strong as estimated? What is Taiwan supposed to do to face this threat? This article analyzes developments regarding the PRC's ballistic missiles and the role of missiles in the unpredictable future conflict across the Taiwan Straight. Finally it proposes counter measures that Taiwan can apply.