Taiwan conducts largest war games yet, involving civilians and businesses

Taiwan kicked off its most expansive military exercises in the island’s history on August 5, stretching across 10 days and pulling in not just soldiers but civilians, businesses, local governments, and media in an unprecedented whole-of-society approach to war preparedness.

The Han Kuang drills, held annually since 1984, have always been about readiness. This year they became about reality. Streets in Taipei were cleared during public air raid drills. Mobile internet speeds were deliberately throttled across at least 14 regions. Civilian factories were mobilized as if wartime production orders had come down the chain.

What the drills actually looked like

Urban resilience drills expanded to two full days this year, fully merging with the military exercises for the first time. Those drills covered first aid training, medical evacuations, and drone-based supply deliveries, reflecting lessons learned from recent conflicts around the world where urban warfare and civilian logistics proved decisive.

The military side was no less ambitious. Exercises simulated escort operations for merchant ships, recognizing that any Chinese blockade would target commercial shipping lanes. Fighter jet dispersal strategies were practiced, a nod to the vulnerability of concentrated air assets on an island with limited runway space.

Reservists trained alongside active-duty troops. Local businesses participated in mobilization scenarios. Community support services rehearsed their roles in what would amount to a sustained siege environment.

Why Taiwan is treating this differently now

The deliberate throttling of mobile internet, while brief and localized, was a particularly telling choice. It forced participants to operate under degraded conditions, the kind that would almost certainly accompany any real attack as undersea cables and communication infrastructure became targets.

The exercises notably avoided framing around specific escalation triggers from Beijing, a diplomatic calibration that reflects Taiwan’s delicate position.

The global supply chain dimension

Taiwan’s strategic importance extends well beyond its 23 million residents. The island produces the vast majority of the world’s most advanced semiconductors, making it arguably the most consequential piece of real estate in the global economy.

The fact that Taiwan is now drilling civilian factories on wartime mobilization carries implications for multinational companies that depend on Taiwanese manufacturing. If the island’s government is planning for scenarios where civilian production shifts to wartime footing, that’s a signal worth paying attention to for any company with exposure to Taiwanese supply chains.

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