Taiwan sets record-high defense spending ... President Lai says it is 'to deter war'; China slams the move

[Financial News] Taiwanese President Lai Ching-te pledged on the 10th, Taiwan’s National Day (Double Ten Day), to strengthen the country’s defenses in the face of Chinese military pressure, declaring, “We will not tolerate subordination.” China strongly pushed back, accusing President Lai of stoking cross-strait (China-Taiwan) confrontation and openly revealing his true colors as an advocate of Taiwan independence.

According to foreign media, including Taiwanese outlets, President Lai sharply criticized China’s continued military pressure and gray-zone operations in a speech at the ceremony marking the 115th anniversary of Double Ten Day, held in the plaza in front of the Presidential Office in Taipei.
He said, “Taiwan cherishes peace but will not give up freedom,” adding, “We are open to engagement, but will never accept subordination.” He then referred to next year’s defense budget having been set at a record high (about 48.7 trillion won), explaining, “Increasing defense spending is not a provocation but is intended to deter war and ensure that dialogue can take place on an equal and dignified footing.”
He also stressed that Taiwan’s resistance to authoritarian expansion was about more than mere survival, saying it “is directly linked to the international community’s belief that force cannot rule over rules.” Comparing Taiwan to “a castle (city) on a mountaintop” and “the salt and light of the world,” he reiterated his determination to make it a bastion for defending democracy and human rights. He also welcomed the reduced risk of conflict resulting from dialogue between the United States and China, while emphasizing that an accurate understanding of history is essential to maintaining regional peace.

China immediately expressed its displeasure. Zhang Han, spokesperson for the Taiwan Affairs Office of China’s State Council, said in a statement that afternoon, “Lai Ching-te’s speech is driven by impure motives to distort facts and mislead the public,” and lambasted him, saying, “He has fully revealed his true colors as a ‘pragmatic advocate of Taiwan independence.’”
Spokesperson Zhang claimed that President Lai was emphasizing the “mainland threat” and undermining peace by stoking cross-strait confrontation with a false narrative of democracy versus authoritarianism. He reiterated the “One China” principle, saying, “The true status quo in the Taiwan Strait is that there is only one China in the world, and Taiwan is part of it.”
The speech came in a significant year marking the 30th anniversary of the introduction of direct presidential elections, amid continued cross-strait tensions since last month’s U.S.-China summit, and drew international attention.
[email protected] Park Ji-hyun Reporter