Representational image of China and Taiwan relationship.
| Photo Credit: Getty Images/iStockphoto
Taiwan aims to “deter war” by increasing its defence spending, the democratic island’s leader said on Saturday (October 10, 2026), as China uses military pressure to assert its territorial claims.
Taiwan’s 23 million people live under the constant threat of an attack by China, which insists the island is part of its territory and has threatened to use force to annex it.
“Our aim by increasing investment in national defence is not to provoke, rather, it is to deter war,” President Lai Ching-te said in a speech to celebrate Taiwan’s National Day.
Successive administrations have ramped up military spending as Taiwan improves its fighting abilities to avoid a potential Chinese invasion — and to show the United States it is serious about its own defence.
Mr. Lai’s government has earmarked a record NT$1.1 trillion ($34.5 billion) in defence spending for 2027, which accounts for more than 3% of GDP.
“We do not seek hegemony, nor do we seek to dominate others,” Mr. Lai said in his annual address in front of the Presidential Office in Taipei, where thousands of people, including foreign diplomats, were gathered.
“However, peace cannot rely solely on wishes, and tolerance cannot become a pretext for aggressors to encroach ever further,” Mr. Lai said, noting that China continued to “apply pressure through military and grey-zone activities in an attempt to alter the status quo across the Taiwan Strait”.
Mr. Lai welcomed talks between the United States and China, but insisted “there must be respect for the right of the people of Taiwan to exist”.
Government officials in Washington and Taipei have said repeatedly that U.S. policy on Taiwan has not changed under President Donald Trump, whose remarks have jangled nerves at times.
‘U.S. support is extremely important’
The United States switched official diplomatic relations from Taipei to Beijing nearly 50 years ago, but Washington is Taipei’s most important security backer.
Mr. Trump’s suggestion in May, following a meeting with Chinese President Xi Jinping in Beijing, that U.S. arms sales to Taiwan could be a bargaining chip with China set off alarm bells across the world.
Taiwan is waiting for Mr. Trump’s signature on $14 billion worth of weapons, including the U.S.-made Patriot air defence system.
Taiwanese fighter jets and two Chinook helicopters carrying giant Taiwan flags flew over the capital ahead of Mr. Lai’s wide-ranging speech, which also covered housing pressure and the declining population.
“You can really feel the warmth in Taiwanese society,” said Feng Jing-heng, 70, who was in the crowd watching the military parade and dance performances.
Tao Yi-feng, a political scientist at National Taiwan University, said Mr. Lai’s speech was “relatively moderate” and unlikely to be met with “overt reaction from Beijing”.
Saturday’s (October 10, 2026) celebrations mark the 115th anniversary of the toppling of China’s Qing dynasty and the subsequent founding of the Republic of China.
The current dispute between China and Taiwan dates to a civil war between the nationalist forces of Chiang Kai-shek, who retreated to the island in 1949 after being defeated by Mao Zedong’s communist fighters.
Parliamentary speaker Han Kuo-yu, who is a senior member of the main opposition party that favours closer ties with China, said, “U.S. support is extremely important to Taiwan’s security”, but he noted the historical and cultural links with China.
“The overwhelming majority of Taiwanese compatriots do not want war; they wish to live their lives in peace and hope for peaceful cross-strait exchanges,” Mr. Han said at the National Day event.
Published – October 10, 2026 11:55 am IST
