China Launches 'Punishment' War Games around Taiwan

A screen showing Chinese maneuvers around Taiwan on a street in Beijing (EPA)
A screen showing Chinese maneuvers around Taiwan on a street in Beijing (EPA)
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China Launches 'Punishment' War Games around Taiwan

A screen showing Chinese maneuvers around Taiwan on a street in Beijing (EPA)
A screen showing Chinese maneuvers around Taiwan on a street in Beijing (EPA)

China launched "punishment" drills around Taiwan on Thursday in what it said was a response to "separatist acts", sending up heavily armed warplanes and staging mock attacks as state media denounced newly inaugurated President Lai Ching-te.

The exercises in the Taiwan Strait and around groups of Taiwan-controlled islands beside the Chinese coast come just three days after Lai took office, Reuters reported.

China, which views democratically governed Taiwan as its own territory and denounces Lai as a "separatist", decried his inauguration speech on Monday, in which he urged Beijing to stop its threats and said the two sides of the strait were "not subordinate to each other".

On Tuesday, Chinese Foreign Minister Wang Yi called Lai "disgraceful".

Lai has repeatedly offered talks with China but has been rebuffed. He says only Taiwan's people can decide their future, and rejects Beijing's sovereignty claims.

The Eastern Theatre Command of the Chinese People's Liberation Army (PLA) said it had started joint military drills, involving the army, navy, air force and rocket force, in areas around Taiwan at 7:45 a.m. (2345 GMT).

The drills are being held in the Taiwan Strait, the north, south and east of Taiwan, as well as areas around the Taiwan-controlled islands of Kinmen, Matsu, Wuqiu and Dongyin, the command said in a statement, the first time China's exercises have included areas round these islands.

China launched military drills around Taiwan on May 23, sending up heavily armed warplanes and staging mock attacks.

State media said China sent out dozens of fighter jets carrying live missiles, and conducted mock strikes, along with warships, of high-value military targets.

Taiwan's defense ministry said 15 Chinese navy ships, 16 coast guard and 33 aircraft were involved, but no live fire drills were held in any areas close to Taiwan.

The drills, dubbed "Joint Sword - 2024A", are set to run for two days. However, unlike a similar "Joint Sword" exercise in April last year, these drills are tagged "A", opening the door to potential follow-ups.

Taiwan's defense ministry said it had sent forces to areas around the island, with its air defenses and land-based missile forces tracking targets. It said it was confident it could protect its territory.

"The launch of military exercises on this occasion not only does not contribute to the peace and stability of the Taiwan Strait, it also highlights (China's) militaristic mentality," the ministry said.

The U.S. State and Defense departments put out identical statements strongly urging Beijing to act with restraint and saying it should not use Taiwan's political transition as a "pretext or excuse for provocative or coercive measures."

"(China's) actions risk escalation and erode longstanding norms that have maintained regional peace and stability for decades," they said.

Analysts, regional diplomats and senior Taiwan officials noted that so far the operations around Taiwan are smaller than the those China staged to protest at the August 2022 visit to Taipei of then-U.S. House Speaker Nancy Pelosi.

Then China staged live-fire drills as part of exercises that ran for days and were denounced by the U.S. as "extreme, disproportionate and escalatory."



US Slaps Sanctions on Network It Accuses of Moving Billions for Iran’s Military

The Treasury Department is pictured in Washington, US, April 25, 2021. (Reuters)
The Treasury Department is pictured in Washington, US, April 25, 2021. (Reuters)
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US Slaps Sanctions on Network It Accuses of Moving Billions for Iran’s Military

The Treasury Department is pictured in Washington, US, April 25, 2021. (Reuters)
The Treasury Department is pictured in Washington, US, April 25, 2021. (Reuters)

The United States on Tuesday imposed sanctions on nearly 50 entities and people it accused of moving billions of dollars for Iran's military.

The US Treasury Department in a statement said those targeted on Tuesday constitute a "shadow banking network" used by Iran's Ministry of Defense and Armed Forces Logistics (MODAFL) and Iranian Revolutionary Guard Corps (IRGC), both of which are under US sanctions.

The network helped the MODAFL and IRGC - which earn money notably from the sale of oil and petrochemicals - gain access to the international financial system and process the equivalent of billions of dollars since 2020, the Treasury said.

The Treasury said the revenue generated by the MODAFL and IRGC through networks of Iranian exchange houses and foreign cover companies supported the provision of weapons and funding to Iran's proxy groups, including Yemen's Houthi militias, and the transfer of drones to Russia for use in the war against Ukraine.

Washington has issued rafts of sanctions targeting Iranian drones and the Houthis, who have been launching drone and missile strikes in shipping lanes since November in what they say is solidarity with Palestinians in Israel's war in Gaza.

"We continue to work with allies and partners, as well as the global financial industry, to increase vigilance against the movement of funds supporting terrorism," Deputy Treasury Secretary Wally Adeyemo said in the statement.

Iran's mission to the United Nations in New York did not immediately comment on the action.

Tuesday's action targeted dozens of companies in Hong Kong, the United Arab Emirates and Marshall Islands, as well as Iran and Türkiye-based firms.

The Treasury said the MODAFL Supply Division uses exchange houses in Iran that manage numerous cover companies registered in jurisdictions such as Hong Kong or the UAE to launder revenue, including from oil sales conducted by Sahara Thunder, which the US imposed sanctions on in April.

The Treasury at the time accused Sahara Thunder of being a front company that oversees MODAFL's commercial activities in support of the IRGC and Russia's war in Ukraine, playing a key role in Iran's design, development, manufacture and sale of thousands of drones.

The move freezes the US assets of banned companies and individuals, and generally bars Americans from dealing with them. Those that engage in certain transactions with them also risk being hit with sanctions.