China has launched a series of large-scale military exercises around Taiwan, described as a stern warning to both Taiwan and external forces, particularly following a major arms deal between the U.S. and Taiwan. The drills include live-fire simulations aimed at encircling the island and blocking major ports, contributing to heightened tensions in the region. Taiwan has responded with rapid response exercises and vowed to defend its democracy against perceived Chinese aggression. Additionally, the drills have sparked reactions in international markets, reflecting investor concerns as the situation continues to evolve.