Taiwan's strategic response to China's escalating pressure campaign has evolved significantly, with recent joint coast guard and military exercises marking a pivotal shift in how the island nation prepares for hybrid threats. In June 2025, Taiwan held large-scale drills in Kaohsiung that involved many different agencies working together to practice their coordinated response to Chinese "grey zone" techniques. These are China's favored way of using coercive pressure without starting an open conflict.

The drills, which centered around a terrorist takeover of a ferry, required an unprecedented level of cooperation between Taiwan's Coast Guard, Army medevac helicopters, Interior Ministry rescue teams, and Navy anti-submarine helicopters. This was the first time that these different forces worked together under one command structure. This new scope of training means Taiwan recognizes that new threats require coordinated responses instead of separate military preparations.

The drills also had an international aspect, with a United States diplomat observing the exercise. This shows that the West still supports Taiwan's right to defend itself and that security concerns in the region go far beyond the Taiwan Strait. These exercises are important for more than simply their tactical usefulness. They also send a message to both Beijing and Washington about Taiwan's resolve to protect itself while keeping international ties.

China’s Grey Zone Strategy

China's grey zone tactics are a complex type of warfare that intentionally stays below the level of normal military engagement. These approaches are meant to slowly take away Taiwan's independence without doing anything that would make Taiwan or its international backers respond with a strong military reaction. Some of the measures are disconnecting undersea communication lines, excavating sand to change maritime boundaries, flying into Taiwan's Air Defense Identification Zone often, and sending naval militia to islands held by Taiwan.

Beijing's approach is based on its basic territorial claims and is a planned strategy. China believes in the "One China Principle" and sees any moves by Taiwan's leadership that hint at independence as direct threats to Chinese national unity. The grey zone tactics have several goals: to stop Taiwan from moving toward formal independence, to keep the cross-strait situation stable on China's terms, and to keep the US and its allies from getting involved.

Taiwan is especially worried about the fact that China's Coast Guard is now working directly with the military. The People's Armed Police and Central Military Commission have been in charge of the China Coast Guard since 2018. This has made it easy for law enforcement and military operations to work together. This makes it hard to tell the difference between civilian and military actions, which makes it harder for Taiwan to respond and for other countries to react appropriately.

China's approach goes beyond boots-on-the-ground actions. It also includes advanced propaganda tactics that are meant to weaken Taiwan's government and change how people think about it both in Taiwan and around the world. Beijing calls Taiwan's administration "separatist" and calls outside backers "meddlers" in China's domestic affairs while saying that Chinese unity is vital for national sovereignty and regional stability.

Taiwan’s Posture

Taiwan has had to modify the way it approaches defense and how it can operate in order to deal with these gray zone threats. The June 2025 drills are just one part of a bigger change that also includes expanding the Han Kuang military exercises and using superior US simulation technologies to focus more on grey zone escalation scenarios.

President Lai Ching-te has said that "societal resilience" is an important part of Taiwan's defense strategy. He knows that grey zone warfare targets not just military capabilities but also economic infrastructure and social cohesiveness. This approach recognizes that defending against hybrid threats demands more than mere military preparedness; it requires collaboration across government agencies, commercial sector companies, and civil society organizations.

Taiwan's Coast Guard working with military command structures is a direct response to China's own convergence of the military and civilian sectors. Taiwan wants to be able to respond quickly to China's threats and de-escalate tensions while yet being able to deny that its actions are military in origin.

Taiwan's defense modernization also shows that the US's backing and the way alliances work in the area are important to its strategy. The leaders of the island know that they need to show both talent and prudence in order to keep international support. The drills have several diplomatic goals: they highlight Taiwan's commitment to self-defense, show that it can work with other countries, and show that it is serious without giving Beijing a reason to use military force.

Taiwan's changing defensive posture shows that it understands how modern conflicts work. Instead of only getting ready for traditional invasions, Taiwan's military has changed its way of thinking to deal with the fact that it is being coerced in a low-level, ongoing way that is meant to slowly weaken its position. This change from getting ready for traditional wars to getting ready for hybrid threats shows how great power competition is shifting in the 21st century.

Taiwan's plan will only work if it can keep this fragile balance: showing strength and resolve while avoiding moves that could give China a reason to escalate. The joint coast guard and military drills are a big step in this direction. They indicate how Taiwan's capacities are growing and show how serious it is about protecting its democratic way of life against small acts of coercion.