By one estimate, Chinese military exercises close to Taiwan this week were the largest since 1996, when Beijing attempted unsuccessfully to disrupt the island’s first fully democratic presidential election. Up to 100 warships were estimated to have taken part in what Taiwanese officials described as a ‘significant security challenge’, while Russian warships were also spotted close to Japan and South Korea.
The danger for the CCP is that it stands to lose more than the US from any intensified trade war
The drills were far more ambitious than those held earlier this year, which were focused on blockading Taiwan. They covered a vast swathe of sea north of the island and appeared to be a warning to the US and its allies to stay out of any fight. In military jargon the Chinese were practicing anti-access/area denial, which is a key element of Beijing’s strategy for fighting a war around Taiwan, designed to deter American intervention by making it too dangerous and costly.

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