"About 20 military ships - half from China and half from Taiwan - are involved in a stand-off near the Taiwan Strait's sensitive median line, according to Reuters.
It comes as China says its military has carried out simulated precision strikes on "key targets on the island and the surrounding sea areas" during a second day of drills, and Taiwan reported multiple air force sorties by Beijing.
The mock air and sea attacks were on "foreign military targets" in waters off Taiwan's southwest coast on Sunday, a security source told the news agency.
"Taiwan is not their only target," said the unnamed source who was familiar with the situation. "It's very provocative.
China, which claims democratically governed Taiwan as its own territory, is carrying out the second of three days of exercises around the island. On Saturday, dozens of Chinese military aircraft crossed the median line that serves as an unofficial barrier between the two sides.
Taiwan's defence ministry said it had spotted 70 Chinese aircraft, including Su-30 fighters and H-6 bombers, as well as 11 ships, around the island on Sunday.
China's aircraft carrier Shandong, which Taiwan has been monitoring since last week, is now more than 400 nautical miles off Taiwan's southeast coast and is carrying out drills, the source said.
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China began the exercises the day after Taiwan's President Tsai Ing-wen returned from a controversial visit to the US where she met Republican and Democrat congressional leaders.
Beijing sees any interaction between US and Taiwanese officials as a challenge to its claim to the island.
https://news.sky.com/story/china-and-taiwan-ships-stand-off-near-sensitive-buffer-zone-12853403