From the Taipei Times (link):
The Ministry of National Defense announced that the computer simulations that form part of the annual Han Kuang military exercises began yesterday. The purpose of the simulations is mainly to test the military’s ground combat abilities.
“This year’s Han Kuang computer exercise will simulate a cross-strait war breaking out in 2008, with the Chinese military successfully landing [troops] in Taiwan after launching full-scale missile and air attacks on the country, and an intense ground battle breaking out,” ministry spokesman Rear Admiral Wu Chi-fang said yesterday.
The simulation envisions the military mobilizing more than 3 million active and reserve service members to confront Chinese ground troops, a ministry press statement said, adding that a simulated battle for Taipei City would be fought.