China's state news agency Xinhua published an article summarising "three key takeaways" from the drills, which began 11 days after the United States announced a record $11.1 billion arms package for Taiwan.

The simulated "encirclement" demonstrated the People's Liberation Army's ability to, "press and contain separatist forces while denying access to external interference," the article said, citing Zhang Chi, a professor at the PLA National Defence University.

While China's war games grow increasingly realistic and bold, it was unlikely to start a war at the cost of its reputation, said Lyle Goldstein, the Asia programme head of US think tank Defense Priorities.

"They threaten and bluster a lot, but ultimately (a war) would be very costly for China no matter what," Goldstein said.

China claims democratically governed Taiwan as its own territory and has not ruled out using force to take it under Chinese control. Taiwan rejects China's claims.

(Reporting by Yimou Lee in Taipei and Liz Lee in Beijing; Editing by Stephen Coates and Michael Perry)