China conducts military exercises near Taiwan as a show of force

China has launched “punishment” drills around Taiwan in response to what it calls “separatist acts”, with heavily armed warplanes conducting mock attacks in the Taiwan Strait and around Taiwan-controlled islands. These exercises come just three days after the inauguration of President Lai Ching-te, whom Beijing views as a “separatist”.

The Chinese People’s Liberation Army (PLA) has started joint military drills involving the army, navy, air force, and rocket force in areas around Taiwan. Dozens of fighter jets carrying live missiles and warships participated in the drills, named “Joint Sword – 2024A”, which are set to run for two days.

Taiwan’s defense ministry condemned the drills, stating that it had deployed forces to track targets and protect its territory. President Lai expressed confidence in Taiwan’s military and urged his compatriots to remain assured of their security.

China’s state broadcaster CCTV criticized Lai’s inauguration speech as harmful and justified the drills as legitimate and necessary. Taiwan’s future, according to China, can only be decided by its 1.4 billion people, not just Taiwan’s 23 million.

Despite the tensions, there was no sign of alarm in Taiwan, where people are accustomed to Chinese military activities. The benchmark index closed up 0.3% on Thursday, and the foreign exchange market operated normally.

These drills are seen as a demonstration of China’s control over the seas and a warning against external interference. While the military implications are significant, the political signals are even greater, according to experts.