The five-day exercise is part of the island's biggest annual military manoeuvre which is this year codenamed 'Han Kuang 29' (Han Glory 29), officials at the defence ministry said today.
The drill simulates a surprise attack by the Chinese in 2017, followed by a large-scale invasion, the ministry said, without explaining why the scenario is being staged in that particular year.
But analysts said the time-frame was reasonable, given China's continued military development and its territorial disputes with neighbouring countries.
"China's landing capabilities would be significantly lifted once its forces are armed with the amphibious assault ships, designed to carry transport, anti-submarine and attack helicopters," he said.
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The amphibious assault ships could be used in its disputes in the East China Sea and the South China Sea, Cheng added.
He also warned of the threat from China's deployment of more than 1,500 ballistic and cruise missiles targeting Taiwan, as their accuracy has been enhanced.
But Beijing has still not ruled out the use of force against the island should it declare independence, even though Taiwan has ruled itself for more than six decades since their split in 1949 at the end of a civil war.
"Over the past few years, ties across the Strait have improved and civil exchanges have been on the rise, but military threat from the mainland has not accordingly diminished," Taiwanese army major-general Tseng Fu-hsin told reporters last week.