Taiwan president says defence spending boost aims to ‘deter war’

Taiwan’s President Lai Ching-te has said the island “cherishes peace” and will “not give up our freedom” in a National Day speech outside the Presidential Office in Taipei.

Lai made the remarks on Saturday before thousands of people, including foreign diplomats.

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“We are open to exchanges, but will not accept subordination,” he said. “Our aim by increasing investment in national defence is not to provoke; rather, it is to deter war.”

Taiwanese fighter jets and two Chinook helicopters carrying giant Taiwan flags flew over the capital ahead of the speech.

The holiday marks the 115th anniversary of a 1911 uprising that toppled China’s last imperial dynasty and led to the founding of the Republic of China.

Taiwan’s 23 million people live under the constant threat of an attack by China, which insists the island is part of its territory, has never renounced the use of force to take it, and calls Lai a “separatist”.

Beijing has rebuffed his offers of talks.

Lai said China continued to “apply pressure through military and grey-zone activities in an attempt to alter the status quo across the Taiwan Strait”.

Grey-zone tactics are actions that stop short of open war. “Peace cannot rely solely on wishes, and tolerance cannot become a pretext for aggressors to encroach ever further,” he added.

Lai’s government has set aside a record 1.1 trillion New Taiwan dollars ($34.5bn) for defence in 2027, more than 3 percent of gross domestic product.

China held war games around the island shortly after Lai’s first National Day speech in 2024, but not last year. Its last drills near Taiwan were in late December, after news of an $11bn arms deal with Washington, the largest ever US weapons package for the island.

Lai said he welcomed talks between the United States and China, but insisted “there must be respect for the right of the people of Taiwan to exist”.

He urged democracies in the Indo-Pacific to join forces to preserve peace and stability in the region.

The US switched official diplomatic relations from Taipei to Beijing nearly 50 years ago but remains Taiwan’s most important security backer.

Officials in Washington and Taipei have repeatedly said US policy on Taiwan has not changed under President Donald Trump.

In May, after meeting Chinese President Xi Jinping in Beijing, Trump suggested arms sales to Taiwan could be a bargaining chip with China, which set off alarm across the world.

Taiwan is now waiting for Trump to sign off on $14bn worth of weapons, including the US-made Patriot air defence system.

The dispute dates back to China’s civil war, when the nationalist forces of Chiang Kai-shek retreated to Taiwan in 1949 after defeat by Mao Zedong’s communists.

The Republic of China remains the island’s formal name.

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