Following President Tsai Ing-wen’s official inauguration, the People’s Liberation Army (PLA) of China conducted joint military exercises around Taiwan and the surrounding areas. Taiwan’s defense expert Zhong Zhi-dong expressed to Epoch Times that the performance of the Taiwan stock market indicates that the PLA’s exercises have not intimidated the Taiwanese people, but serve as a warning for people to see through China’s ambitions.
On May 23rd, the PLA announced that forces from the Eastern Theater Command, including land, sea, air, and rocket forces, would conduct joint exercises around Taiwan and the surrounding Kinmen area from the 23rd to the 24th. The exercises were focused on “joint maritime and air defense patrols, joint seizure of comprehensive battlefield control, joint precision strikes on key targets,” with ships and aircraft patrolling near Taiwan and coordinating within and outside the island chain to test the joint combat capabilities of the forces in the theater.
Taiwan’s Ministry of National Defense condemned China’s actions as irrational provocation that undermines regional peace and stability, stating that Taiwan will deploy troops and all personnel to defend freedom, democracy, and the sovereignty of the Republic of China.
Dr. Zhong Zhi-dong from the National Defense Security Research Institute of the Ministry of National Defense told Epoch Times on May 23rd that these PLA military exercises were a continuation of the so-called encirclement exercises during Speaker Pelosi’s visit to Taiwan, covering a similar area. Of particular note is that the Chinese military designated a contiguous zone in the southeast waters of Taiwan, adjacent to the Philippines and U.S. military bases in the Philippines.
“This may be directed towards the United States and the Philippines. Because it is expected that if there is a situation in the Taiwan Strait, the U.S. military base in the Philippines will be a crucial support point for Taiwan.”
As the PLA announced military exercises around Taiwan, the performance of the Taiwan stock market drew attention. TSMC jumped at the opening on the 23rd, leading to a significant increase in the stock market index, creating a new historical high. However, after the announcement of the exercises around Taiwan, the market index briefly turned negative but rebounded to close at a record high.
Dr. Zhong noted that the stock market’s resilience in the face of military intimidation suggests that the deterrent effect of the PLA exercises on the Taiwanese people is gradually diminishing. He pointed out that these exercises serve as a warning for Taiwan and the international community to recognize China’s expansionist ambitions and attempts to change the status quo in the Taiwan Strait.
He emphasized that the consistent military threats from China in recent years have made Taiwan’s people more vigilant, with the majority unwilling to accept unification. The overt declaration of military coercion from China only pushes Taiwan further away from Beijing.
The situation in the Taiwan Strait remains tense, leading to closer interactions between Taiwan and its allies. It was reported by Reuters that in April, the U.S. and Taiwan navies conducted joint exercises in the Pacific involving about six naval vessels, including frigates, supply ships, and support vessels, although the exercises were not officially announced.
Dr. Zhong highlighted that in Taiwan’s latest defense white paper, there is a renewed emphasis on regional defense, especially as a crucial position in the first island chain. Through military exchanges with the U.S. and allied countries in the Indo-Pacific defense mechanism, Taiwan enhances operational interoperability.
“Military cooperation between Taiwan and the United States has never been a secret; it’s just that it used to be more discreet. Recently, it has gradually become more visible. I believe this is a deliberate move by the United States to send a signal to China that if there’s a military conflict in the Taiwan Strait, the U.S. military will take action.”
In Japan, the statement “A Taiwan contingency is equal to a Japan contingency” by former Prime Minister Abe is now a consensus. During President Tsai’s inauguration ceremony, the Japanese delegation, consisting of 31 bipartisan members of parliament, was the largest. Japanese Chief Cabinet Secretary Katsunobu Kato publicly congratulated Tsai on assuming office.
Dr. Zhong explained that Japan’s focus on the Taiwan Strait issue stems from the interdependence between Taiwan and Japan and their relations with the U.S. Under the U.S.-Japan security treaty, in the event of U.S. military intervention in the Taiwan Strait, Japan would also find it challenging to remain uninvolved.
On the day of Tsai’s inauguration on May 20th, Beijing announced sanctions against three U.S. defense companies involved in arms sales to Taiwan, including General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space & Security.
Dr. Zhong believes that Beijing’s sanctions hold little significance as these U.S. defense companies have been selling F-16 fighter jets to Taiwan, anticipating China’s response and not backing down from selling weapons to Taiwan due to the sanctions.