Beijing — China launched missiles and deployed dozens of fighter jets and warships around Taiwan on Tuesday for a second day of live-fire exercises aimed at simulating a blockade of the self-ruled island’s main ports and assaults on maritime targets.

The two-day war games, dubbed “Mission Justice 2025”, were described by Taipei as “highly provocative and reckless”.

China claims Taiwan as part of its sovereign territory and has refused to rule out military action to seize the island democracy.

AFP journalists on Pingtan, the Chinese island closest to the main island of Taiwan, saw a volley of rockets fly into the air around 9 a.m. (0100 GMT) on Tuesday, leaving trails of white smoke.

At least 10 rockets were launched in rapid succession, sending a booming sound reverberating through the sky and drawing tourists to the waterfront to take photos and videos with their phones.

China’s People’s Liberation Army (PLA) said in a statement shortly afterward that it had “conducted long-range live-fire exercises in the waters north of the island of Taiwan and achieved the desired effects.”

The show of force follows a Exceptional arms sales to Taipei by the United States – the main financier of Taiwan’s security – and Japanese Prime Minister’s comments that any use of force against Taiwan by China could justify a military response from Tokyo.

China’s top diplomat, Wang Yi, said Tuesday that Beijing will “strongly oppose” large-scale U.S. arms sales to Taiwan, adding that any attempt to hinder China’s unification with the island “will inevitably end in failure.”

Beijing said this month it would take “resolute and forceful measures” to safeguard its territory after U.S. lawmakers approved the latest major arms sale to the island.

President Trump said Monday that the United States was not informed in advance of the Chinese exercises, but he was not particularly concerned about them either. He ruled out the possibility that his counterpart Xi Jinping would order an invasion of Taiwan, noting that China has been conducting exercises around the island for many years.

“I don’t believe he’s going to do it,” Mr. Trump said, touting what he called his “great relationship” with the Chinese leader.

Chinese Foreign Ministry spokesperson Lin Jian called the exercises “a punitive response to Taiwan’s pro-independence separatist forces and a necessary action to defend national sovereignty and territorial integrity.”

Taiwanese President Lai Ching-te expressed his “strongest condemnation” and said Beijing was “deliberately undermining regional stability through military intimidation.”

“This is a blatant provocation against regional security and the international order,” he wrote on Facebook, adding that Taipei would not escalate the situation.

China blocks Taiwan

China said Tuesday morning it had deployed destroyers, frigates, fighters and bombers “to conduct exercises on the topics of identification and verification, warning and expulsion, simulated strikes, assault on maritime targets, as well as anti-aircraft and anti-submarine operations.”

A statement from the PLA’s Eastern Theater Command said the exercises in the waters north and south of Taiwan “tested the capabilities of air-sea coordination and integrated blockade and control.”

State broadcaster CCTV reported that one of the central themes of the exercises was the “blockade” of Taiwan’s main ports, including Keelung in the north and Kaohsiung in the south.

Chinese authorities have released a map of five major areas around Taiwan where war exercises would take place. They are expected to end on Tuesday at 6 p.m.

Taiwan said these areas, some of which are within 12 nautical miles of its coasts, had affected international sea and air routes.

Dozens of flights to Taiwan’s Kinmen and Matsu islands have been canceled, according to the island’s Civil Aviation Administration, affecting around 6,000 passengers, while more than 850 scheduled international flights will be “affected” and could face delays.

Taiwan’s Defense Ministry said Tuesday it detected 130 Chinese military aircraft near the island, as well as 14 Chinese navy ships and eight unspecified government vessels, in the 24 hours ending at 6 a.m.

Taiwan’s coast guard said it deployed 14 vessels to monitor naval activity, “using a one-on-one observation approach to forcefully deter vessels.”

“So many exercises like this over the years”

Many ordinary Taiwanese reacted stoically.

“There have been so many such exercises over the years that we are used to them,” said Chiang Sheng-ming, 24, a fishmonger at a market in the capital Taipei.

“If you hold on, you have nothing to fear,” adds Tseng Chang-chih, 80, a fruit seller.

“War? Impossible. It’s just a posturing. If they really attacked Taiwan, they would have to pay the price.”

The Chinese military last held large-scale exercises involving live fire around Taiwan in April. Surprise maneuvers condemned by Taipei as “blatant military provocations” and “escalatory behavior” that he said threatened the peace.

DJ MARKETS EUROPA/DAX is up slightly from the target level

DOW JONES–European stock markets are higher Tuesday afternoon. There is little news and most investors are no longer active as the start of the year approaches. We cannot exclude the so-called “window dressing” of individual stocks, i.e. the targeted maintenance of prices in the portfolios of institutional investors. On some exchanges, trading is shortened only on Tuesdays. Trading in Germany and Austria ends at 2 p.m. THIS. While today is the last trading day of the year on some exchanges, shortened listings will take place on Wednesday in Lisbon, London, Madrid and Paris.

The DAX gained 0.5 percent to 24,476 points; the index is up 22 percent since the start of the year. The DAX can look back on an excellent year overall. “A closer look, however, shows that only the first half of the year was excellent for the DAX. The second half of the year was more of a sideways trend,” explains QC Partners. The MDAX is once again lagging and is up 19 percent year to date. The TecDAX has a meager yield of 5 percent. This continues the pattern of German blue-chip companies performing better in their international operations than German mid-sized companies. Whether this will change with Germany’s billion-dollar investment program remains to be seen.

The Euro-Stoxx-50 rose by 0.6 percent to 5,789 points. The majority of the year’s best-performing countries come from the South, where European economic growth was based last year. The Spanish stock market rose by 48 percent, while in Athens the index even rose by 50 percent.

On the foreign exchange market, the euro changes little, at $1.1769; During the year, the greenback lost a lot of value. This is unlikely to make it easier for European companies to sell more expensive products around the world due to the strength of the euro next year. Yields on the bond markets are up slightly. After the liquidation of the day before, precious metals are recovering. The price of gold rose 1.2 percent to $4,385, silver rose 3.8 percent to $74.90. Not surprisingly, European mining stocks were one of the day’s winners, rising 1.6 percent. Shares of silver producer Fresnillo rose 5.5 percent.

The geopolitical situation remains tense. US President Donald Trump has threatened Iran with a military strike if the country resumes its nuclear program. Meanwhile, Hamas was threatened with serious consequences if the terrorist organization did not lay down its arms. Finally, China is organizing one of the largest military exercises in recent years off the coast of Taiwan. This is likely a reaction to the recent announcement of US arms deliveries to the island nation.

Additionally, the United States recently carried out an attack on a port area in Venezuela where US President Trump said drugs were being loaded onto boats and smuggled across international waters, saying a “big explosion” had occurred. Oil prices are barely reacting to this news. Brent is up 0.4 percent.

Defense stocks are recovering after the selling pressures of the day before. There is still no sign of progress in peace or ceasefire negotiations in Ukraine. Rheinmetall gained 2.1 percent, Renk 2.5 percent and Hensoldt 0.9 percent.

Meanwhile, bank stocks continue to run. The sector can look forward to a good year in 2025 thanks to the rise in yields on the bond markets. Deutsche Bank gains 1.5 percent and Commerzbank 2.0 percent.

Chipmaker Infineon’s sales growth (+1.8%) is down, with only one sector seeing strong growth: semiconductors to power AI data centers. “We are seeing a strong increase in demand and many indicators suggest that this will continue in the coming years,” CEO Jochen Hanebeck told Handelsblatt. “We currently cannot deliver as much as customers order.”

=== 
INDEX           zuletzt    +/- %  absolut +/- % YTD 
Euro-Stoxx-50      5.788,57    +0,6%   36,86   +17,4% 
Stoxx-50         4.918,84    +0,5%   25,52   +13,6% 
DAX           24.476,16    +0,5%   125,04   +22,3% 
MDAX          30.548,50    +0,3%   95,97   +18,4% 
TecDAX          3.613,61    +0,4%   13,79   +5,0% 
SDAX          17.094,60    +0,5%   78,05   +22,6% 
CAC           8.141,91    +0,4%   29,89   +9,8% 
SMI           13.259,65    +0,1%   19,06   +14,2% 
ATX           5.304,29    +1,1%   56,33   +43,2% 
 
DEVISEN          zuletzt    +/- %    0:00 Mo, 18:00  % YTD 
EUR/USD          1,1769    +0,0%   1,1767   1,1756  +13,7% 
EUR/JPY          183,56    -0,1%   183,67   183,59  +13,1% 
EUR/CHF          0,9286    -0,1%   0,9291   0,9287  -1,0% 
EUR/GBP          0,8715    -0,0%   0,8716   0,8712  +5,4% 
USD/JPY          155,94    -0,1%   156,03   156,12  -0,5% 
GBP/USD          1,3505    +0,0%   1,3502   1,3494  +7,9% 
USD/CNY          7,0292    -0,0%   7,0312   7,0324  -2,3% 
USD/CNH          6,9881    -0,2%   6,9987   7,0001  -4,5% 
AUS/USD          0,6701    +0,1%   0,6693   0,6690  +8,4% 
Bitcoin/USD       87.770,40    +0,6% 87.232,35 87.544,55  -7,3% 
 
ROHÖL           zuletzt VT-Settlem.   +/- %  +/- USD  % YTD 
WTI/Nymex          58,29    58,08   +0,4%    0,21  -20,9% 
Brent/ICE          62,12    61,94   +0,3%    0,18  -19,4% 
 
METALLE          zuletzt    Vortag   +/- %  +/- USD  % YTD 
Gold           4.384,52   4.330,40   +1,2%   54,12  +72,8% 
Silber           74,90    72,18   +3,8%    2,73 +173,6% 
Platin          1.854,76   1.791,70   +3,5%   63,06 +137,7% 
Kupfer            5,49     5,49     0%    0,00  +33,6% 
YTD bezogen auf Schlussstand des Vortags 
(Angaben ohne Gewähr) 
=== 

Contact the author: maerkte.de@dowjones.com

DJG/thl/ros

(END) Dow Jones Newswires

December 30, 2025 7:01 a.m. ET (12:01 p.m. GMT)

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