Taiwan’s government announced plans to boost defence spending significantly in an effort to deter potential military aggression from China, President Lai Ching-te said during National Day celebrations on October 10.
Addressing a crowd that included foreign diplomats outside the Presidential Office in Taipei, Lai emphasized that the increased investment in national defence aims to prevent war rather than provoke it. The planned defence budget for 2027 is set at a record NT$1 trillion (approximately S$44 billion), representing over 3% of Taiwan’s gross domestic product. This follows a trend of successive Taiwanese administrations enhancing military capabilities to strengthen deterrence against China and demonstrate Taipei’s commitment to its own security.
“We do not seek hegemony, nor do we seek to dominate others,” Lai said. “However, peace cannot rely solely on wishes, and tolerance cannot become a pretext for aggressors to encroach ever further.” He highlighted ongoing military and “grey-zone” activities by China aimed at shifting the status quo across the Taiwan Strait, a reference to Beijing’s frequent drills and other pressure tactics near the island.
China’s Taiwan Affairs Office responded strongly to Lai’s remarks, accusing the Taiwanese leader of distorting facts, misleading the public, and harboring separatist ambitions. The office reiterated Beijing’s position that Taiwan is an integral part of China and described Lai’s speech as a continuation of “Taiwan independence” rhetoric that escalates tensions. China has consistently rejected dialogue offers from Taiwan’s leadership and has not ruled out the use of force to assert control over the island.
Ahead of the presidential address, Taiwanese fighter jets and two Chinook helicopters flew over Taipei displaying large national flags, underscoring the emphasis on defence and sovereignty during the festivities. The October 10 holiday commemorates the 1911 overthrow of the Qing dynasty and the founding of the Republic of China, of which Taiwan considers itself the successor state.
The Taiwan-China dispute has its roots in the Chinese civil war that ended in 1949, when the nationalist government of Chiang Kai-shek retreated to Taiwan after defeat by the communists under Mao Zedong. Since then, Taiwan has maintained a separate government, with Beijing viewing it as a renegade province.
President Lai also expressed support for dialogue between the United States and China but underscored that any resolution must respect the rights and existence of the Taiwanese people. While the U.S. officially recognizes Beijing and shifted diplomatic ties nearly 50 years ago, it remains Taiwan’s most significant security partner. American officials in Washington and Taipei have maintained that U.S. policy toward Taiwan remains unchanged despite occasional provocative statements from former President Donald Trump.
The developments reflect ongoing tensions in the region amid growing concerns over China’s expanding military presence and Taiwan’s efforts to bolster its defence posture in response.