The surprise manoeuvres were slammed by Washington as "intimidation tactics" and come after Taiwan President Lai Ching-te called China a "foreign hostile force".
Named "Strait Thunder-2025A", the drills are located in the middle and southern parts of the strait, the military said, which is a vital artery for global shipping.
Wednesday's exercises aim to "test the troops' capabilities" in areas such as "blockade and control, and precision strikes on key targets", Senior Colonel Shi Yi, spokesman of the Chinese military's Eastern Theater Command, said in a statement.
Taiwan's defence ministry confirmed China's military exercises were ongoing but did not elaborate.
Taiwan is a potential flashpoint between China and the United States, which is the island's most important security partner.
The US State Department said Beijing's "aggressive" military activities and rhetoric towards Taiwan "only serve to exacerbate tensions and put the region's security and the world's prosperity at risk".
Chinese leaders vigorously oppose Washington's support for Taiwan and detest Lai, who they call a "separatist".
Drills in the strait come a day after China sent its army, navy, air and rocket forces to surround Taiwan for exercises Beijing said were aimed at practising for "precision strikes" and a blockade of the island.
That prompted Taipei to dispatch its own forces as part of a "Rapid Response Exercise".
- 'Robust' deterrence -
Beijing has increased the deployment of fighter jets and naval vessels around Taiwan in recent years to press its claim of sovereignty, which Taipei rejects.
Tensions between Taipei and Beijing have escalated since Lai took office in May 2024 and adopted a tougher stance than his predecessor Tsai Ing-wen in defending the island's sovereignty.
US Defense Secretary Pete Hegseth vowed "robust, ready and credible deterrence" in the strait during a visit to the region last week.
Although the United States is legally bound to provide arms to Taiwan, Washington has long maintained "strategic ambiguity" when it comes to whether it would deploy its military to defend the island from a Chinese attack.
China has carried out several large-scale exercises around the island in recent years, often described as rehearsals for a blockade and seizure of the territory.
Analysts have speculated that China was more likely to attempt a blockade of Taiwan than launch an all-out invasion, which was riskier and would require a huge military deployment.
burs-amj/rsc
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