Headlines
China encircles Taiwan in massive military display
Published by Global Banking & Finance Review®
Posted on December 30, 2025
5 min readLast updated: January 20, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on December 30, 2025
5 min readLast updated: January 20, 2026
China's military conducts extensive drills around Taiwan, showcasing force and deterring US intervention, amid rising tensions in the Taiwan Strait.
By Yimou Lee, Joe Cash and Liz Lee
TAIPEI/BEIJING, Dec 30 (Reuters) - China fired rockets into waters off Taiwan on Tuesday, showcased new assault ships and dismissed prospects of U.S. and allied intervention to block any future attack by Beijing to take control of the island in its most extensive war games to date.
As part of drills rehearsing a blockade, China's Eastern Theatre Command conducted 10 hours of live-fire exercises, launching rockets into waters to the north and south of the democratically governed island.
Chinese naval and air force units also simulated strikes on maritime and aerial targets and carried out anti-submarine drills around the island, while state media released images touting Beijing's technological and military superiority and its ability to take Taiwan by force if necessary.
Named "Justice Mission 2025", the drills began 11 days after the U.S. announced a record $11.1 billion arms package to Taiwan, drawing the Chinese defence ministry's ire and warnings that the military would "take forceful measures" in response.
DETERRING 'EXTERNAL FORCES'
For the first time, China's military said the drills were aimed at deterring outside intervention.
"Any external forces that attempt to intervene in the Taiwan issue or interfere in China's internal affairs will surely smash their heads bloody against the iron walls of the Chinese People's Liberation Army," China's Taiwan Affairs Office said in a statement on Monday.
Beijing has also intensified its rhetoric over Taiwan in the weeks since Japanese Prime Minister Sanae Takaichi suggested a hypothetical attack on the island could trigger a military response from Tokyo.
Chinese leader Xi Jinping last week promoted the commander of the Eastern Theatre Command, which oversees Taiwan-facing operations, to full general - a move which analysts say serves to shore up the military's combat readiness after a leadership purge.
"China not only has vast numerical superiority, it now has qualitative superiority across the board in weaponry and probably in training as well," said Lyle Goldstein, Asia programme director at U.S.-based think tank Defense Priorities.
"This is an arms race Taiwan cannot possibly win."
U.S. President Donald Trump downplayed the drills on Monday, talking up his relationship with Xi and saying China has carried out naval exercises around Taiwan for 20 years.
The drills this week, the sixth major round of war games since 2022, were the largest by area and the closest yet to Taiwan.
SHOW OF FORCE
A senior Taiwan security official told Reuters that China appeared to be simulating striking land-based targets such as the U.S.-made HIMARS rocket system, a mobile artillery system with a range of about 300 km (186 miles) that could hit coastal targets in southern China.
Taiwan's President Lai Ching-te said in a post on Facebook that frontline troops were primed to defend the island but that Taipei did not seek to escalate the situation.
China's state media rolled a stream of propaganda posters, including one titled "Hammers of Justice" that showed Lai being crushed by one hammer striking the island's south while another hits its north.
Chinese newspapers also highlighted the first deployment of the Type 075 amphibious assault ship. Zhang Chi, an academic at China's National Defence University, said the vessel can simultaneously launch attack helicopters, landing craft, amphibious tanks and armoured vehicles.
CHINA BELIEVED TO BE EYEING 2027 READINESS TARGET
Taiwan sits alongside key commercial shipping and aviation routes, with some $2.45 trillion in trade moving through the Taiwan Strait each year and the airspace above the island a conduit between China, the world's second-largest economy, and the fast-growing markets of East and Southeast Asia.
Taiwan's Civil Aviation Authority said that although 11 of Taipei's 14 flight routes were affected by the drills, no international flights had been cancelled. Routes to the offshore islands of Kinmen and Matsu near China's coast were blocked, affecting around 6,000 passengers.
Taiwan's defence ministry said 71 Chinese military aircraft and 24 navy and coast guard vessels had been operating around the island on Tuesday. The ministry added that China fired 27 rockets in Taiwan's waters.
Chinese coast guard ships were tracking Taiwanese vessels during the drills, a Taiwan coast guard official told Reuters.
A Pentagon report released last week said the U.S. military believed China was preparing to be able to win a fight for Taiwan by 2027, the centenary of the founding of the PLA.
China's military said on Monday that simulating a blockade of Taiwan's deep-water Port of Keelung to the island's north and Kaohsiung to Taiwan's south, its largest port city, was central to the drills.
The Pentagon report said U.S. military planners believed Beijing was also contemplating carrying out strikes from China to take Taiwan by "brute force" if needed.
(Reporting by Joe Cash, Liz Lee and Xiuhao Chen in Beijing and Yimou Lee in Taipei; Writing by Joe Cash; Editing by Stephen Coates and Saad Sayeed)
A military blockade is an action taken to prevent goods, services, or people from entering or leaving a specific area, often used to exert pressure or control over a region.
Foreign currency refers to money that is issued by a country other than one's own, used in international transactions and trade.
Military drills are training exercises conducted by armed forces to prepare for various scenarios, including combat operations and strategic maneuvers.
Economic growth is the increase in the production of goods and services in an economy over a specific period, often measured by GDP.
Investment portfolios are collections of financial assets such as stocks, bonds, and other securities held by an individual or institution.
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