Taiwan's Defense Ministry confirmed live-firing drills, adding that it detected more than 130 Chinese military aircraft and 22 navy and coast guard vessels around the island in the 24 hours until 6 a.m. local time (2200 GMT).
The exercises, named "Justice Mission 2025", include live-fire drills in multiple zones surrounding Taiwan and simulate strikes on maritime and key ports, according to China's Eastern Theater Command.
According to Chinese authorities, the war games are due to finish at 6 p.m. on Tuesday and will cover five large zones around Taiwan.
Chinese military spokesperson Shi Yi called the drills "a stern warning against 'Taiwan Independence' separatist forces, and...a legitimate and necessary action to safeguard China's sovereignty and national unity," state broadcaster CCTV reported.
On Monday, China said the drills were aimed at "deterrence" of outside military intervention.
The exercices come less than two weeks after the US announced a record $11.1 billion (€9.43 billion) arms package to Taiwan, including missiles, drones, artillery systems and military software.
Tensions have also been high in the region after a statement from Japan that its military could get involved if China acted against Taiwan.
China's top diplomat, Wang Yi, on Tuesday blasted "pro-independence forces in Taiwan" and Japan's leaders.
"In response to the continuous provocations by pro-independence forces in Taiwan and the large-scale US arms sales to Taiwan, we must resolutely oppose and strongly counter them," Wang said during an end-of-the-year diplomatic event in Beijing.
Meanwhile, Chinese state media on Tuesday published a poster showing the Taiwan's President Lai being crushed by one hammer striking the island's south while another hits its north.
Additionally, on Monday, the Chinese military released an AI-generated video depicting automated humanoid robots, microdrones and weaponized robotic dogs attacking Taiwan.
Taiwan President Lai Ching-te condemned the drills as irresponsible but also said Taipei would not escalate tensions.
Taiwan's Civil Aviation Authority said the drills have affected 11 of the island's 14 flight routes, though disruption to international flights has been limited.
On the island, Taiwanese people struck a defiant tone.
"If you stand your ground, there's nothing to be afraid of," 80-year-old Tseng Chang-chih told AFP news agency. "War? Impossible. It's just posturing. If they really attacked Taiwan, they would have to pay a price."
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