Taiwan’s leader says increasing defence spending to ‘deter war’

Taiwan's President Lai Ching-te recently announced that the island nation plans to increase its defense spending to deter potential Chinese aggression. The democratic island of 23 million people lives under constant threat of an attack from China, which claims the territory as its own. Speaking at a National Day celebration, Lai emphasized that the aim of the increased investment in national defense is not to provoke, but to deter war.

His government has set a record budget of NT$1.1 trillion (RM140 billion) for defense spending in 2027, which accounts for over three percent of the island's GDP. Lai stressed that Taiwan does not seek hegemony or to dominate others, but noted that peace cannot rely solely on wishes, and tolerance cannot become a pretext for aggressors to encroach further.

He welcomed talks between the United States and China, but insisted that Taiwan's right to exist must be respected. US policy on Taiwan has remained unchanged under President Donald Trump, who previously suggested that US arms sales to Taiwan could be used as a bargaining chip with China. Taiwanese fighter jets and two Chinook helicopters were seen flying over Taipei ahead of Lai's speech, which also addressed housing shortages and declining population.

Historically, the dispute between China and Taiwan dates back to a civil war between nationalist forces led by Chiang Kai-shek, who retreated to Taiwan in 1949, and communist forces led by Mao Zedong. The current tensions stem from this conflict. Taiwanese political scientist Tao Yi-feng believes Lai's moderate speech is unlikely to provoke a reaction from Beijing.