Marking the first anniversary of his presidency, Taiwan’s leader Lai Ching-te delivered a speech today that struck a delicate balance between outreach to Beijing and a firm commitment to strengthen the island’s military readiness. Amid rising tensions in the Taiwan Strait, Lai reiterated Taiwan’s willingness to engage in “exchanges and cooperation” with China on the basis of “reciprocal dignity,” while warning that “preparing for war is the best way to avoid it.” His address comes as Beijing has intensified grey-zone tactics around the self-governing democracy, and Taipei braces for potential military drills to coincide with the anniversary.
Context and Occasion for the Speech
First Year in Office under a Cloud of Tension
Lai Ching-te, of the Democratic Progressive Party (DPP), assumed Taiwan’s presidency on 20 May 2024, inheriting a fragile status quo in cross-Taiwan-Strait relations. China labels Lai a “separatist” for rejecting Beijing’s sovereignty claims and insisting that only Taiwan’s populace can determine its future. Over the past year, Chinese military aircraft routinely skirted Taiwan’s air defence identification zone, and navy vessels probed the island’s southern and eastern maritime borders in “grey-zone” operations designed to test Taiwanese responses without provoking outright conflict. Lai’s anniversary speech was therefore shaped by both the humanitarian imperative of peace and the strategic reality of looming coercion.
Key Messages of President Lai’s Address
Commitment to Peace “Without Illusions”
Speaking at the presidential office in central Taipei, Lai began by underscoring his personal and governmental commitment to peace. “Peace is priceless and war has no winners,” he said, cautioning against “dreams nor illusions” about Beijing’s stance. He affirmed that Taiwan “also is committed to peace—because it is the only path that safeguards our way of life.” Nonetheless, Lai stressed that genuine peace requires mutual respect and realistic appraisals of the threats posed by an authoritarian neighbour.
READ MORE: Israel to Permit “Basic Amount” of Food Aid into Gaza as Famine Looms
Defense Posture and Deterrence
In the same breath, Lai called on Taiwan to continue bolstering its defences. “Preparing for war is the best way to avoid it,” he declared, urging the legislature to maintain robust defence spending on asymmetric capabilities—including mobile anti-ship missiles, mine layers and cyber-electronic warfare assets—that capitalise on Taiwan’s geography and technological strengths. Lai also highlighted ongoing efforts to deepen military cooperation with friendly democracies, notably the United States, Japan and European partners, as well as accelerating domestic arms production under the “Taiwan Defence Innovation Base” initiative.
Offers of Dialogue and Exchange with Reciprocity
To demonstrate that Taiwan’s peace overtures are not contingent on capitulation, Lai offered Beijing a framework for bilateral engagement on non-political fronts. “Taiwan is happy to have exchanges and cooperation with China as long as there is reciprocal dignity,” he said, citing people-to-people tourism, cross-Strait trade in agricultural products and joint disaster-relief drills as examples. He argued that such exchanges could “replace hemming in” and that “dialogue can replace confrontation,” positioning Taiwan as the more reasonable actor in the standoff.
Beijing’s Response: Rejection and Accusations of Duplicity
China’s Taiwan Affairs Office swiftly dismissed Lai’s speech as a “two-faced tactic,” claiming it was “doomed to fail.” Spokesperson Chen Binhua reiterated Beijing’s core position: “No matter what the leaders of the Taiwan region say or how they say it, Taiwan is a part of China, and nothing can change the inevitable trend of national reunification.” The state-run Global Times accused Lai of peddling “peace talk mask[ing] a hard-line separatist agenda,” and warned that military drills would be stepped up around 20 May to “send a strong warning.”
Domestic Reactions in Taiwan
Cross-Party Support for Defence Buildup
Within Taiwan’s Legislative Yuan, Lai’s defence proposals drew support from both his DPP colleagues and moderates in the main opposition Kuomintang (KMT). KMT spokesperson Lin Kuo-chun applauded Lai’s emphasis on peace but cautioned that “We must ensure that any dialogue with China does not undermine our de facto independence.” Several smaller parties, including the Taiwan People’s Party, also backed increased defence budgets, arguing that Taiwan’s democratic system must be safeguarded by credible deterrence.
Public Opinion: Balancing Security and Engagement
Recent polls indicate that more than 80 percent of Taiwanese favour maintaining or increasing defence spending, while roughly two-thirds believe that dialogue with China should continue on humanitarian and economic issues. Commentators note that Lai’s dual emphasis reflects the public mood: wary of Beijing’s military pressure yet hopeful for greater stability through practical cooperation.
Regional and International Implications
United States: Continued Arms Sales and Diplomatic Support
Lai’s mention of talks with Washington “continuing smoothly” comes amid the Biden administration’s deliberations on renewing or expanding arms sales to Taiwan, including advanced F-16 fighter jets and coastal defence cruise missiles. The US State Department reaffirmed its commitment under the Taiwan Relations Act to provide Taiwan with self-defence capabilities, while simultaneously urging both sides to reduce tensions through dialogue.
Japan and Europe: Shared Concerns over Coercion
Japan’s foreign ministry issued a statement praising Lai’s “measured approach” and reaffirming Tokyo’s solidarity with Taiwan in upholding the rules-based order. In Europe, members of the European Parliament reiterated calls for the EU to deepen trade and cultural ties with Taipei and to monitor China’s grey-zone tactics as a challenge to international norms.
China’s “Grey Zone” Tactics: Ongoing Pressure Campaign
Recent Chinese Operations in the Strait
Taiwan’s defence ministry reported that in the 24 hours preceding Lai’s speech, six PLA aircraft and 11 naval vessels had been detected near Taiwan, continuing a pattern of “salami-slice” coercion. Taiwan’s coast guard also documented five incursions by small Chinese boats—some remote-controlled toy vessels—planting the PRC flag on Taiwanese beaches to provoke media spectacle and test maritime surveillance gaps. These operations, officials warn, are designed to exhaust Taiwan’s defence resources and erode civilian morale ahead of any larger contingency.
Limitations of Conventional Surveillance
Deputy Coast Guard Director-General Hsieh Ching-chin noted that the use of low-radar-signature craft complicates early warning and response. To counter this, Taipei is accelerating procurement of coastal radar stations, unmanned drones and AI-driven image-analysis systems, alongside stepped-up maritime patrols. Lai pointed to these upgrades in his speech as key components of Taiwan’s layered defences.
Economic and Sovereign Wealth Fund Initiatives
Diversifying Economic Ties and Enhancing Resilience
Amid security concerns, Lai also addressed Taiwan’s economic strategy. He announced plans to establish a sovereign wealth fund—financed through bond issuances and special-purpose levies—to invest in the island’s high-tech industries. The fund, he said, would mobilise capital from government and private-sector partners to support semiconductors, green energy and biotech, thereby reducing strategic dependencies and bolstering economic resilience in the face of PRC pressure and possible US tariffs on Taiwanese exports. Details of the fund’s governance structure and target asset classes are to be released in the coming months.
Conclusion: A Calculated Balance of Peace and Preparedness
At the close of his address, Lai Ching-te returned to the twin themes of peace and resolve. “War has no winners,” he reminded listeners, yet he underscored that Taiwan’s freedom and democracy must be defended with unwavering resolve. By offering Beijing a blueprint for respectful engagement, while simultaneously deepening ties with democratic allies and strengthening national defences, Lai aims to navigate Taiwan through one of the most perilous chapters in cross-Strait relations. As the anniversary of his presidency concludes, Taiwan’s leader projects both an olive branch toward dialogue and an iron resolve to safeguard the island’s future—an approach that will be tested in the days ahead as regional tensions mount.
