Taiwan plans to boost defense spending to deter war, President Lai Ching-te said on Saturday, as China steps up military pressure to assert its claim over the self-governed island.

Lai's government has allocated a record NT$1.1 trillion ($34.5 billion) for defense spending in 2027, equivalent to more than 3% of GDP.

Taiwan's 23 million people face the threat of a Chinese attack. Beijing claims the island as part of its territory and has not ruled out using force to bring it under its control.

"Our aim in increasing investment in national defence is not to provoke, but to deter war," President Lai Ching-te said in a speech marking Taiwan's National Day.

Successive governments have increased military spending as Taiwan strengthens its defenses against a potential Chinese invasion and seeks to demonstrate to the United States its commitment to defending itself.

Lai says China must respect Taiwanese people's right to exist

"We do not seek hegemony, nor do we seek to dominate others," Lai said in his annual address outside the Presidential Office in Taipei, attended by thousands of people, including foreign diplomats.

He warned that peace could not be taken for granted, accusing China of using military and grey-zone activities to change the status quo across the Taiwan Strait.

Lai welcomed talks between the United States and China but stressed that Beijing must respect "the right of the people of Taiwan to exist."

Officials in Washington and Taipei have repeatedly said US policy on Taiwan remains unchanged under President Donald Trump, although some of his remarks have raised concerns in Taipei.     

US arms deal in focus as Taiwan awaits Trump's approval

Trump raised concerns in May when he suggested that US arms sales to Taiwan could be used as a bargaining chip in negotiations with Chinese President Xi Jinping, following their meeting in Beijing.

Taiwan is awaiting Trump's approval of $14 billion in weapons sales, including the US-made Patriot air defense system.

At a high-profile summit between US President Donald Trump and Chinese President Xi Jinping in Washington in September, trade and artificial intelligence dominated the agenda. One of the most contentious issues, Taiwan, was discussed only behind closed doors.

Ahead of Lai's speech, Taiwanese fighter jets and two Chinook helicopters carrying giant Taiwan flags flew over the capital. 

Facing China's much larger military, which continues to expand its arsenal with advanced weapons, including stealth fighter jets, aircraft carriers and a vast array of missiles,  Taiwan is increasing defence spending and modernising its armed forces.

Washington remains Taipei's most important security backer

China's Taiwan Affairs Office did not immediately respond to a request for comment on Lai's speech. Beijing has never renounced the use of force to bring Taiwan under its control, calls Lai a "separatist" and has rejected his offers of talks.

Democratically governed Taiwan faces growing military and political pressure from China, which claims the island as its territory despite strong objections from the government in Taipei.

The United States welcomed Lai's commitment to maintaining peace and stability across the Taiwan Strait. A senior US administration official said that, referring to China, "a routine speech is no justification for aggressive or coercive actions."

The United States switched official diplomatic relations from Taipei to Beijing nearly 50 years ago, but Washington is Taipei's most important security backer.

Saturday's celebrations marked the 115th anniversary of the 1911 revolution that toppled China's Qing dynasty and paved the way for the founding of the Republic of China.

The dispute between China and Taiwan dates back to the Chinese civil war, when nationalist leader Chiang Kai-shek fled to the island in 1949 after his forces were defeated by Mao Zedong's communists.

Edited by: Roshni Majumdar

Don't let the algorithm hide the news. If you rely on our team for trusted reporting, please take a moment to select us as your preferred source on Google by clicking here and hitting the "star" or "preferred" button, so you'll always see our verified news first.