Taiwan, a democratically governed island that rejects Beijing's sovereignty claims, began the 10-day exercise last week, as China ramps up its military presence around the island.
The exercises rehearsed various scenarios should China ever make good on threats to try to seize the island by force, including how to break a maritime blockade and, for the first time, slowing mobile internet.
"The so-called 'Han Kuang exercise' has always been a posturing, wasteful charade," Chinese defence ministry spokesperson Chen Xi said in a statement on Friday.
"The Democratic Progressive Party authorities have also recklessly stoked war panic, accelerating efforts to turn cities into battlefields and push ordinary people to the front lines," he said, referring to Taiwan's ruling party.
The People's Liberation Army remained on high alert and was fully prepared, continuously enhancing its real-combat capabilities to "counter separatism and external interference", Chen said.
"This remains the solid trump card for safeguarding national sovereignty and territorial integrity, and for maintaining peace and stability across the Taiwan Strait."
While China has never renounced the use of force to bring Taiwan under its control, it says it would prefer "peaceful reunification".
Taiwan's government says only the island's people can decide their future, and regularly criticises China's pressure campaign.
The Chinese military operates almost daily in the skies and waters around Taiwan.
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