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Television footage showed artillery units firing at mock enemies trying to land on the Penghu island chain in the Taiwan Strait.
Arch foe China has repeatedly threatened to invade Taiwan should Taipei's government ever declare formal independence.
Taiwan's army stayed tight-lipped on the latest military exercise, describing the drill as "routine" in nature.
The exercise came after 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 tanks.
The Chinese 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 ratcheted 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.
WAR.WIRE |