By Iroyin Yoruba Television
Taiwan President Lai Ching-te has defended his government's plans to increase military spending, declaring that the island values peace but will not surrender its freedom as tensions with China continue to shape security across East Asia.
Speaking during Taiwan's National Day celebrations in Taipei on Saturday, October 10, 2026, Lai said strengthening the island's defence capabilities was intended to discourage military aggression rather than provoke conflict.
His address drew a sharp response from Beijing, which accused the Taiwanese leader of distorting the facts surrounding the cross-strait dispute and promoting separatist positions.
The exchange highlights the continuing disagreement between Taiwan and China over the island's political status, its right to determine its future and the role of military power in the region.
Lai's government has allocated a record NT$1.1 trillion, approximately US$34.5 billion, for defence spending in 2027. The proposed allocation represents more than three per cent of Taiwan's gross domestic product.
The announcement comes as Taiwan continues to modernise its armed forces amid increased Chinese military and political pressure.
The United States, Taiwan's most important security partner, has also remained central to the debate over the island's defence, with a proposed US arms package worth approximately US$14 billion awaiting approval.
Although Lai expressed support for dialogue between Washington and Beijing, he insisted that peace must be accompanied by respect for the rights and security of Taiwan's population.
TAIWAN SAYS DEFENCE SPENDING IS INTENDED TO DETER WAR
Addressing thousands of people gathered outside the Presidential Office in Taipei, Lai said Taiwan was prepared to pursue peaceful exchanges but would not accept subordination.
He argued that increasing defence investment was a means of preventing conflict rather than initiating it.
The president's message reflects the central position of his administration: Taiwan must strengthen its capacity to defend itself while remaining open to communication with China.
Lai said peace could not depend entirely on hope and goodwill, particularly when military pressure continued across the Taiwan Strait.
He also argued that stronger self-defence capabilities could help ensure that any future dialogue took place on the basis of equality and dignity.
The Taiwanese government considers the development of credible defensive capabilities important to discouraging an attack and maintaining the island's ability to make its own decisions.
Its defence programme includes modernising military equipment, improving readiness and preparing for the possibility of a serious security crisis.
However, military spending is only one component of national security. Governments must also consider training, maintenance, logistics, intelligence, civil preparedness and the ability to sustain essential services during an emergency.
Taiwan's proposed budget therefore represents a broader effort to strengthen its defence posture.
The scale of the allocation also demonstrates the financial demands associated with maintaining a modern military in an environment where a larger neighbouring power continues to assert territorial claims over the island.
CHINA CONDEMNS LAI'S REMARKS
China responded critically to Lai's address, accusing him of misrepresenting the situation across the Taiwan Strait and advancing what Beijing describes as separatist objectives.
China's Taiwan Affairs Office said the speech disregarded facts, distorted the truth and misled the public.
Beijing maintains that Taiwan is part of China and rejects the Taiwanese government's position that the island's future should be determined independently by its population.
Chinese officials have repeatedly described Lai as a separatist and rejected his calls for dialogue on terms that they believe imply separate political status for Taiwan.
The disagreement reflects fundamentally different understandings of sovereignty.
China regards Taiwan as part of its territory and has not renounced the use of force to bring the island under its control.
Taiwan, which is governed by its own elected authorities, maintains its own political institutions, military and administrative systems.
The government in Taipei rejects Beijing's claim that it has the authority to determine Taiwan's future.
These competing positions have complicated efforts to reduce tensions and establish a stable framework for communication.
China's response to Lai's National Day speech reinforces the difficulty of reaching agreement when the two sides disagree not only over policy but also over the fundamental political status of the island.
The latest exchange did not, by itself, establish that military action was imminent. It nevertheless demonstrated how public statements can become part of the wider political contest between the two governments.
A DISPUTE WITH DEEP HISTORICAL ROOTS
The disagreement between China and Taiwan is rooted in the Chinese civil war and the political developments that followed it.
In 1949, after the defeat of nationalist forces by the Chinese Communist Party, the government of the Republic of China relocated to Taiwan.
The People's Republic of China was established on the mainland, while the authorities in Taiwan continued operating under the Republic of China name.
Over subsequent decades, Taiwan developed its own political institutions and eventually transitioned to a democratic system in which voters elect their leaders.
Beijing continued to claim sovereignty over the island and has consistently opposed moves that it interprets as formal independence.
Taiwan's political development, meanwhile, has strengthened public debate about identity, self-government and the island's future.
The dispute has become an important issue in international relations because of Taiwan's strategic location, its role in global technology manufacturing and the potential consequences of military conflict in the region.
The Taiwan Strait is a major international shipping route, and instability could affect trade, transport and commercial activity well beyond East Asia.
A serious confrontation could also involve other governments, particularly given the United States' security relationship with Taiwan and its broader commitments in the Indo-Pacific.
These factors have made the management of cross-strait tensions a continuing concern for regional and international policymakers.
CHINA'S MILITARY ACTIVITY AROUND TAIWAN
Taiwan has faced repeated military pressure from China, including the operation of military aircraft and naval vessels around the island.
Taiwan's Ministry of National Defence reported that 21 Chinese military aircraft and seven Chinese navy ships were operating around Taiwan during the 24-hour period ending at 6 a.m. on October 10.
According to the ministry, 13 of the aircraft crossed the median line in the Taiwan Strait and entered Taiwan's air defence identification zone.
An air defence identification zone is an area in which authorities monitor aircraft approaching their territory. It is not the same as sovereign national airspace.
The reported activity came as Taiwan marked its National Day and as Lai used his address to defend the government's security policies.
Taiwanese officials have described China's military operations and other forms of pressure as attempts to alter the status quo across the strait.
Beijing rejects Taiwan's sovereignty claims and regards its military activities as connected to its position that the island is part of China.
The presence of military aircraft and naval vessels can increase the risk of miscalculation, particularly when operations occur frequently and forces operate in close proximity.
A collision, misunderstanding or unexpected military encounter could escalate if communication channels fail or either side interprets an incident as deliberate aggression.
For this reason, regional security discussions frequently emphasise the importance of communication, operational discipline and mechanisms for managing unexpected incidents.
Neither Taiwan's reported military observations nor China's political response to Lai's speech independently establishes that a conflict will occur. They do, however, illustrate the continuing security pressures surrounding the island.
TAIWAN'S RECORD DEFENCE ALLOCATION
The Taiwanese government has set aside NT$1.1 trillion, equivalent to approximately US$34.5 billion, for defence in 2027.
The proposed amount exceeds three per cent of the island's gross domestic product, according to reports of Lai's announcement.
The allocation reflects the administration's intention to strengthen military readiness and modernise equipment as China continues expanding its own military capabilities.
Defence budgets typically cover a wide range of requirements, including personnel, equipment procurement, maintenance, training, infrastructure and operational readiness.
The precise distribution of Taiwan's proposed allocation will be important in determining how much funding is available for new weapons, improvements to existing systems and other defence priorities.
A larger budget can create opportunities to purchase modern equipment and improve military preparedness, but it does not automatically guarantee greater effectiveness.
The value of spending depends on how resources are allocated, whether equipment can be maintained, how personnel are trained and whether different military systems can operate together effectively.
Governments must also consider the long-term financial implications of major procurement programmes, including the costs of maintenance, replacement parts and future upgrades.
For Taiwan, the challenge is to strengthen its defensive capabilities while managing the economic and fiscal implications of a sustained increase in military spending.
The budget also sends a political message to international partners that the island is prepared to invest substantial resources in its own security.
However, the effectiveness of the programme will ultimately depend on implementation rather than the headline spending figure alone.
THE UNITED STATES AND TAIWAN'S SECURITY
The United States remains Taiwan's most important international security partner, even though Washington shifted formal diplomatic recognition from Taipei to Beijing in 1979.
The relationship involves unofficial diplomatic engagement, security cooperation and the provision of American weapons to support Taiwan's defence.
The United States has repeatedly stated that it supports peace and stability across the Taiwan Strait.
Washington has also encouraged Beijing to avoid coercive actions and pursue meaningful dialogue with Taiwan's elected authorities.
Nevertheless, the precise scope of future American military support remains a subject of attention.
Taiwan is awaiting a decision on a proposed US arms package worth approximately US$14 billion, which reportedly includes the American-made Patriot air defence system.
The package is significant because modern air defence capabilities can form part of a broader effort to protect military facilities, infrastructure and populated areas against potential aerial threats.
However, a proposed arms package should not be treated as completed until the relevant authorities approve it and the necessary arrangements are finalised.
The timing and contents of the package may influence Taiwan's procurement planning and the broader security debate.
The issue also reflects the complicated relationship between American support for Taiwan and Washington's wider dealings with Beijing.
The United States must manage its security relationships while maintaining communication with China on trade, regional stability and other international issues.
For Taiwan, uncertainty surrounding future arms deliveries reinforces the importance of its own defence planning and the need to maintain communication with international partners.
CALL FOR REGIONAL COOPERATION
During his National Day speech, Lai called on democracies in the Indo-Pacific region to work together to preserve peace and stability.
The appeal reflects Taiwan's view that security across the strait has implications beyond its own territory.
The Indo-Pacific contains major shipping routes, manufacturing centres and commercial networks that connect economies across Asia and the wider world.
A serious military confrontation involving Taiwan could disrupt trade and create uncertainty for businesses dependent on regional supply chains.
The effects could extend to shipping, electronics manufacturing, financial markets and the movement of essential goods.
Governments across the region therefore have an interest in reducing the risk of conflict, even when their diplomatic relationships with China and Taiwan differ.
Cooperation can take several forms, including diplomatic communication, economic engagement, information sharing and discussions about crisis management.
However, governments do not necessarily share identical views on Taiwan's political status or the appropriate response to China's military activities.
Some countries maintain formal diplomatic relations with Beijing while also emphasising the importance of peace and stability across the Taiwan Strait.
Others have developed closer security relationships with Taiwan or expressed stronger public concerns about coercion.
Lai's appeal to regional democracies therefore faces the challenge of translating broad support for stability into practical cooperation while accounting for the different interests of participating governments.
NATIONAL DAY AND TAIWAN'S POLITICAL IDENTITY
Taiwan's National Day commemorates the 1911 uprising that led to the collapse of China's Qing dynasty and paved the way for the establishment of the Republic of China.
The occasion has become an important public event, featuring official speeches, ceremonies and displays intended to represent the island's political institutions and identity.
This year's celebrations included military aircraft and helicopters carrying large Taiwan flags over Taipei before Lai's address.
Thousands of people attended the event, including foreign guests and diplomats.
Among the international visitors mentioned in official reporting were Eswatini's King Mswati III and Indiana Lieutenant Governor Micah Beckwith. A Japanese parliamentary delegation also attended the celebrations.
Eswatini is one of the few countries that maintain formal diplomatic relations with Taiwan.
The presence of foreign guests provided an opportunity for Taiwan to demonstrate its continuing international relationships despite Beijing's efforts to limit its formal diplomatic recognition.
China opposes official engagement that it views as implying recognition of Taiwan as a separate sovereign state.
Taiwan, meanwhile, continues to seek international participation and maintain relationships with governments that are willing to engage with its authorities.
National Day therefore serves both as a domestic celebration and as a platform for communicating Taiwan's political priorities to international audiences.
ECONOMIC CONSEQUENCES OF A POTENTIAL CRISIS
The Taiwan Strait dispute has implications for the global economy because Taiwan plays an important role in advanced technology manufacturing.
The island is particularly significant in the semiconductor industry, which supplies components used in smartphones, computers, vehicles, industrial equipment and artificial-intelligence systems.
A serious disruption to Taiwan's manufacturing or transport networks could affect companies that depend on reliable supplies of advanced chips.
Shipping through nearby waters is also important to regional and international trade.
Any major military confrontation could raise transport costs, delay deliveries and increase uncertainty for manufacturers and investors.
Businesses might respond by building additional inventories, diversifying suppliers or reconsidering the geographical concentration of their production.
These measures can improve resilience, but they may also increase costs and require substantial investment.
Governments have therefore increasingly considered the economic risks associated with concentrated supply chains and the possibility of disruption in strategically important regions.
The Taiwan dispute demonstrates how political and military tensions can influence economic planning far beyond the immediate area of disagreement.
Nevertheless, the existence of these risks does not mean that conflict is inevitable.
Diplomatic communication, crisis-management mechanisms and efforts to avoid miscalculation remain important tools for reducing the likelihood of a serious confrontation.
THE CHALLENGE OF MAINTAINING DIALOGUE
Lai said he welcomed talks between the United States and China, while stressing that Taiwan's population must have its rights respected.
His position highlights the difficulty of separating wider US-China relations from the question of Taiwan's future.
Washington and Beijing maintain extensive economic and diplomatic relationships, but they disagree on several strategic issues, including Taiwan's status and the role of American security support for the island.
Taiwan's government wants its interests to be considered in discussions that could affect its security.
China, however, opposes arrangements that it believes legitimise Taiwan's separate political status.
These competing positions make direct dialogue between Taipei and Beijing particularly difficult.
Beijing has rejected Lai's offers of talks, describing him as a separatist.
For communication to produce meaningful progress, the parties would need to identify areas where discussions can occur despite their disagreements over sovereignty.
Potential subjects could include avoiding military incidents, maintaining communication channels and reducing the risk of misunderstandings.
Such discussions would not necessarily resolve the fundamental political dispute, but they could help manage the risks associated with it.
The continuing challenge for regional governments is to preserve opportunities for dialogue while responding to security concerns and avoiding steps that could intensify tensions.
CONCLUSION
Taiwan President Lai Ching-te's National Day address has renewed attention on the island's security policy and its increasingly tense relationship with China.
Lai defended the government's proposed NT$1.1 trillion defence allocation for 2027, arguing that stronger military capabilities are intended to deter war rather than provoke it.
China condemned the speech, reiterating its claim over Taiwan and accusing the Taiwanese leader of promoting separatist objectives.
The exchange comes amid continued Chinese military activity around the island and uncertainty over a proposed US arms package worth approximately US$14 billion.
For Taiwan, the central challenge is to strengthen its ability to defend itself while maintaining opportunities for dialogue and preserving economic stability.
For China, the dispute remains tied to its claim of sovereignty over the island and its opposition to Taiwan's separate political identity.
The United States and other regional governments face the task of supporting stability while managing their own diplomatic and security relationships.
The consequences of a serious confrontation could extend far beyond East Asia, affecting international trade, advanced technology manufacturing and regional security.
For now, the latest statements underline the distance between the positions of Taipei and Beijing.
Whether tensions ease will depend on future decisions, the management of military activity and the willingness of the parties to maintain communication despite their fundamental disagreements.