Between May and August, when the weather is normally good for holding wargames in the Taiwan Strait, Chinese troops often conduct routine exercises on Dongshan Island in the southeastern Chinese province of Fujian, the defense ministry said.

"But as of now there were not any signs detected showing that Chinese communist troops are going to hold a military exercise on Dongshan Island," defense ministry spokesman Huang Suey-sheng told reporters.

He said Taipei would keep a close eye on any military movements near Taiwan.

The Beijing-based New Express Daily said China was gearing up for large-scale military wargames aimed at "taking control of the Taiwan Strait", with 18,000 troops and the amphibious landing of a tank brigade.

The exercises were to take place in June and July on Dongshan Island just 150 nautical miles west of Taiwan's Penghu Island, the daily said.

Soldiers were deployed on Dongshan Island in mid-May where tanks and armoured personnel carriers had been practicing amphibious landings daily on Jinluan beach, it said.

Since the re-election of Taiwan President Chen Shui-bian in March, China has racheted up its rhetoric towards the island, reiterating its long-standing vow to take it by force should Chen move the territory towards formal independence.

Beijing has considered Taiwan part of its territory awaiting reunification since the end of a civil war in 1949.

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