Its military flexing began on Tuesday night immediately after US House Speaker Nancy Pelosi's trip commenced. Economic sanctions against Taiwan were also announced.
"Six major areas around the island have been selected for this actual combat exercise and during this period, relevant ships and aircraft should not enter the relevant waters and airspaces," the state-backed China Central Television reported.
The last time China fired missiles into Taiwanese waters was in 1996, around 26 years ago.
Navy ships and military aircraft of the People's Liberation Army also crossed the Taiwan Strait median line several times in the morning, Taiwanese sources told Reuters.
Additionally, the defence ministry stated on Thursday, that its website suffered cyber attacks and went offline temporarily.
It also stated that was trying to enhance its cyber security as tensions with China soared due to Pelosi's visit.
Not just that of the defence ministry, but several government websites, including the presidential office, suffered from overseas cyber attacks, some of which could be traced back to China and Russia, according to The Guardian.
The European Union (EU), meanwhile, criticised China's military drills. "There is no justification to use a visit as pretext for aggressive military activity in the Taiwan Strait. It is normal and routine for legislators from our countries to travel internationally," EU foreign affairs chief Josep Borrell said.
The Association of Southeast Asian Nations (ASEAN) also warned that volatility in the region could lead to "miscalculation, serious confrontation, open conflicts and unpredictable consequences among major powers."
So has Paraguay: "Paraguay expresses its solidarity with the Republic of China (Taiwan) in the context of the threats it has been subjected to," President Mario Abdo Benítez wrote on Twitter.
Taiwan Cabinet spokesperson Lo Ping-Chen told the media on Thursday that the government was expecting an increase in "psychological warfare" in the next few days.
Click here to understand what the crisis is all about.