The Ministry of National Defense has described China's live-fire exercise in the waters off of Fujian Province's Pingtan City as part of routine annual drills.
The ministry said it used joint intelligence, surveillance and reconnaissance to closely monitor the exercise and analyse whether it could be part of Beijing's possible "deterrence effect" in the Taiwan Strait.
Earlier, the Pingtan Maritime Safety Administration issued warnings about the drill, which barred ships from entering the 150-square kilometer exercise area in waters around Niushan Island.
The site is located roughly 80-kilometers south of Matsu Islands off Fujian Province and about 165-kilometers from Taipei.
The drill took place from 9AM until 1PM.
China did not say which branches of its armed forces participated in the exercise.
Premier Cho Jung-tai has criticized China for holding the live-fire drill - saying it harms regional peace and that Beijing should desist from holding such exercises so frequently and so close to Taiwan.
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