Taiwan president pledges record defence spending to 'deter war' in National Day address

Speaking outside the Presidential Office in Taipei before thousands of people including foreign diplomats, Lai said Taiwan "cherishes peace" and will "not give up our freedom." He added: "We are open to exchanges, but will not accept subordination."

Taiwanese fighter jets and two Chinook helicopters carrying giant Taiwan flags flew over the capital ahead of the speech, which marked the 115th anniversary of the 1911 uprising that toppled China's last imperial dynasty.

Lai's government has set aside more than 3 percent of gross domestic product for defence in 2027. The record allocation comes as Beijing continues to pressure the island militarily. According to Taiwan's defence ministry, 21 Chinese military aircraft and seven navy ships were operating around Taiwan in the 24 hours to 6 a.m. Saturday, with 13 of the aircraft crossing the median line in the Taiwan Strait.

"Peace cannot rely solely on wishes, and tolerance cannot become a pretext for aggressors to encroach ever further," Lai said. He described China's actions as "grey-zone activities" that stop short of open war but try to alter the status quo across the strait.

Lai urged democracies in the Indo-Pacific to join forces to preserve regional peace and stability. He also welcomed talks between the United States and China but insisted "there must be respect for the right of the people of Taiwan to exist."

Eswatini King Mswati III and Indiana Lieutenant Governor Micah Beckwith were among foreign guests offering congratulations, Lai's office said.

Analysis

Why This Matters

The defence budget increase signals Taiwan's determination to strengthen deterrence amid escalating Chinese military pressure, including aircraft crossing the median line and naval deployments.
The speech underscores the fragile status quo in the Taiwan Strait, a flashpoint that could draw in the United States and other regional powers.
Lai's call for democracies to unite reflects a broader push to internationalise Taiwan's security, while Beijing continues to reject dialogue and denounce the president as a "separatist."

Background

Taiwan has been governed separately from China since the end of the Chinese civil war in 1949. Beijing considers the island a breakaway province and has never renounced the use of force to bring it under its control. The United States maintains unofficial ties with Taiwan and provides it with arms, most recently an $11bn package last year. Lai Ching-te, from the Democratic Progressive Party, has offered talks to Beijing but been rebuffed. China held major war games around Taiwan after his first National Day address in 2024.

Key Perspectives

Taiwan's government: Increasing defence spending to 3% of GDP is a necessary deterrent against Chinese coercion. Lai stresses the island's resolve to preserve its democratic system and freedom, while keeping the door open to dialogue. China: Beijing regards Lai as a "separatist" and insists Taiwan is part of China. It has consistently rejected his overtures for talks and continues military drills to signal its opposition to any move toward formal independence. International community: The United States and many democracies support Taiwan's right to self-defence but must balance that against the risk of provoking Beijing. Lai's appeal for joint action puts pressure on allies to deepen security cooperation.

What to Watch

Whether China responds with renewed military exercises around Taiwan, as it did after Lai's 2024 speech.
The delivery and deployment of US weapons, including F-16V fighter jets, and any Chinese reaction.
Next steps in US-China high-level talks: Lai noted he welcomed dialogue but insisted on Taiwan's right to exist, a red line for Beijing.

Analysis

Why This Matters

Background

Key Perspectives

What to Watch

Sources