Brief

Taiwan President Lai pledges record defence spending to deter war

In a National Day address, Lai said the spending increase is meant to deter conflict with China.

By Felo News Desk · Published Sat, 10 Oct 2026 20:40:25 GMT

President Lai Ching‑te told thousands of attendees, including foreign diplomats, that Taiwan’s defence budget will rise to a record NT$1.1 trillion for 2027, a move he said is intended to deter war rather than provoke it.

What happened

During the National Day ceremony outside the Presidential Office in Taipei on 10 October 2026, Lai delivered his annual address. He highlighted that the island “cherishes peace” and will “not give up our freedom.” The speech was accompanied by a fly‑over of Taiwanese fighter jets and two Chinook helicopters bearing large Taiwan flags.

What the reports add

Al Jazeera noted that the holiday marks the 115th anniversary of the 1911 uprising that led to the Republic of China, and that Lai said the aim of the spending boost is “not to provoke; rather, it is to deter war.” The New Indian Express added that the NT$1.1 trillion (about US$34.5 billion) represents more than three percent of Taiwan’s GDP and that Lai stressed Taiwan does not seek hegemony or domination.

What was said

“Our aim by increasing investment in national defence is not to provoke, rather, it is to deter war,” Lai told the audience, as reported by both outlets.
He also said, “We do not seek hegemony, nor do we seek to dominate others,” according to the New Indian Express.

How it came about

Taiwan has long faced a “constant threat” from China, which claims the island as its territory. Earlier this month, Taiwan’s defence minister said existing U.S. arms sales remain on track while a $14 billion package was stalled (Felo). The announcement follows a regional trend of increased defence spending, such as the U.S. push for NATO members to meet a 5 % GDP target (Felo) and Russia’s planned budget boost (Felo).

Key facts

Taiwan’s 2027 defence budget is set at NT$1.1 trillion (US$34.5 billion) (newindianexpress.com)
The budget equals more than 3 % of Taiwan’s GDP (newindianexpress.com)
President Lai said the spending increase is meant to deter war, not provoke it (aljazeera.com)
The National Day speech was held on 10 Oct 2026 in Taipei with foreign diplomats present (aljazeera.com)
Taiwan’s fighter jets and Chinook helicopters displayed the island’s flag during the ceremony (aljazeera.com)