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Taiwan President Highlights Defence Spending as Deterrent, Not Provocation

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Taiwan President Highlights Defence Spending as Deterrent, Not Provocation
Photo: Taiwan's President Lai Ching-te gestures as he delivers a speech during National Day celebrations in front of the Presidential Office in Taipei, Taiwan, on October 10, 2026 [Ann Wang/Reuters]

Taiwan’s President Lai Ching‑te said the island values peace and will not surrender its freedom during a National Day address outside the Presidential Office in Taipei. Speaking to thousands, including foreign diplomats, Lai stated, “We are open to exchanges, but will not accept subordination.” He added that increasing national defence investment is intended to deter war, not provoke conflict. Ahead of the speech, Taiwanese fighter jets and two Chinook helicopters bearing large Taiwan flags flew over the capital. The holiday commemorates the 115th anniversary of the 1911 uprising that ended China’s last imperial dynasty and led to the founding of the Republic of China. Lai noted that China continues to apply pressure through military and grey‑zone activities aimed at altering the status quo across the Taiwan Strait. He warned that peace cannot rely solely on wishes and that tolerance should not become a pretext for further encroachment. The Lai administration has earmarked a record 1.1 trillion New Taiwan dollars ($34.5 billion) for defence in 2027, exceeding 3 percent of GDP. China conducted war games near Taiwan shortly after Lai’s first National Day speech in 2024, but not last year; its most recent drills occurred in late December following an $11 billion U.S. arms deal, the largest weapons package Taiwan has received. Lai welcomed U.S.–China talks but insisted that respect for Taiwan’s right to exist must be upheld. He urged Indo‑Pacific democracies to cooperate to maintain regional peace and stability. The United States, which switched official diplomatic recognition from Taipei to Beijing nearly 50 years ago, remains Taiwan’s key security partner. U.S. policy on Taiwan has not changed under President Donald Trump, although Trump’s 2022 meeting with Chinese President Xi Jinping sparked concerns when he suggested that arms sales to Taiwan could be used as leverage with China. Taiwan awaits Trump’s approval of a $14 billion weapons package, including U.S. Patriot air‑defence systems. The dispute traces back to the Chinese civil war, when Chiang Kai‑shek’s nationalist forces retreated to Taiwan in 1949 after defeat by Mao Zedong’s communists. The Republic of China remains the island’s formal name.

Frequently asked questions

What record defence budget did Taiwan announce for 2027?

Taiwan earmarked 1.1 trillion New Taiwan dollars ($34.5 billion) for defence in 2027, exceeding 3 percent of GDP.

What anniversary does Taiwan’s National Day commemorate?

It marks the 115th anniversary of the 1911 uprising that ended China’s last imperial dynasty and led to the founding of the Republic of China.

Which recent U.S. arms deal prompted China to conduct war games near Taiwan?

China’s most recent drills occurred in late December after an $11 billion U.S. arms deal, the largest weapons package Taiwan has received.

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