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Defence & Security10 Oct 2026 · about 6 min

Taiwan president says defence spending boost aims to ‘deter war’

The brief

Taiwan President William Lai said stronger defence is meant to discourage an attack. He presented the policy as defensive, not aggressive. Taiwan, he said, cherishes peace and remains open to exchanges, but will not accept subordination. The goal is to protect freedom while reducing the chance of war. The mechanism is deterrence. A better-funded military can make aggression appear more difficult, costly, or uncertain for an attacker. Taiwan’s government has proposed 1.1 trillion New Taiwan dollars for defence in 2027. That spending could support capabilities such as air defence and other military preparations. The policy responds to China’s military and grey-zone pressure around Taiwan. Lai said peace cannot depend only on wishes, while Taiwan’s defence ministry reported Chinese aircraft and ships operating nearby. He also urged regional democracies to cooperate, showing that Taiwan sees defence investment as part of a wider effort to preserve stability.

01

What did Taiwan’s president say the country’s increased defence spending is intended to achieve?

Taiwan President William Lai said stronger defence is meant to discourage an attack. He presented the policy as defensive, not aggressive. Taiwan, he said, cherishes peace and remains open to exchanges, but will not accept subordination. The goal is to protect freedom while reducing the chance of war.

The mechanism is deterrence. A better-funded military can make aggression appear more difficult, costly, or uncertain for an attacker. Taiwan’s government has proposed 1.1 trillion New Taiwan dollars for defence in 2027. That spending could support capabilities such as air defence and other military preparations.

The policy responds to China’s military and grey-zone pressure around Taiwan. Lai said peace cannot depend only on wishes, while Taiwan’s defence ministry reported Chinese aircraft and ships operating nearby. He also urged regional democracies to cooperate, showing that Taiwan sees defence investment as part of a wider effort to preserve stability.

02

What is military deterrence, and how is it supposed to prevent war?

In standard international-relations terms, military deterrence is the effort to prevent attack by showing that aggression would bring unacceptable costs or a poor chance of success. It does not mean seeking war. It means maintaining enough capability and resolve that an opponent chooses restraint instead.

The mechanism combines ability and credibility. A stronger defence can protect territory, resist an assault, and impose costs. Public statements can also signal resolve. Lai used this logic when he said Taiwan’s increased national-defence investment was intended to deter war. Taiwan is also awaiting approval for weapons including the US-made Patriot air-defence system.

Deterrence is not a guarantee. China has never renounced force to take Taiwan and continues military and grey-zone activities, according to the article. Taiwan’s planned 2027 defence budget therefore reflects an attempt to reduce vulnerability and preserve the status quo, while Lai continues to call for peace and dialogue.

03

How large is Taiwan’s planned defence budget, both in money and as a share of its economy?

Taiwan’s planned defence budget is exceptionally large in the article’s account. The government has set aside 1.1 trillion New Taiwan dollars for 2027. The article gives the equivalent as $34.5bn, and says the total exceeds 3 percent of Taiwan’s gross domestic product.

This scale matters because defence spending provides resources for military readiness and equipment. The article does not list every item covered by the budget. It separately notes that Taiwan is waiting for approval of $14bn in weapons, including the US-made Patriot air-defence system. That pending package is distinct from the planned annual budget figure.

The increase reflects Taiwan’s security environment. China claims Taiwan as its territory, has not renounced force, and conducts military and grey-zone activities nearby. Lai said the spending is intended to deter war. The budget therefore signals preparation for pressure while Taiwan continues to describe itself as committed to peace and freedom.

04

What are ‘grey-zone’ tactics, and how do they differ from open warfare?

Grey-zone tactics are actions designed to pressure an opponent without crossing into openly declared or full-scale war. The article defines them as activities that stop short of open war. They can create pressure, test reactions, and gradually change conditions while making a major military response harder to justify.

The key mechanism is persistent coercion below the level of direct combat. The article says China uses military and grey-zone activities in an attempt to alter the status quo across the Taiwan Strait. It reports that 21 Chinese military aircraft and seven navy ships operated around Taiwan during one 24-hour period. Thirteen aircraft crossed the median line and entered Taiwan’s air-defence identification zone.

Such activity keeps Taiwan under pressure even without an invasion. Lai warned that tolerance must not become a reason for aggressors to encroach further. Taiwan’s response combines increased defence spending, attention to daily military activity, and calls for regional democracies to protect peace and stability.

05

What consequences does China’s military pressure around Taiwan have for Taiwan’s security policy and the regional status quo?

China’s pressure raises the risk that the Taiwan Strait’s existing balance could change through coercion rather than a declared war. China claims Taiwan, has not renounced force, and calls Lai a separatist. The article says Beijing continues military and grey-zone activities to alter the status quo.

The immediate mechanism is repeated activity around the island. In one 24-hour period, Taiwan reported 21 Chinese military aircraft and seven navy ships nearby. Thirteen aircraft crossed the median line and entered Taiwan’s air-defence identification zone. These actions demand monitoring and preparedness, even without an attack.

As a result, Taiwan is increasing defence spending and seeking weapons, including Patriot air defence. Lai also urged Asia-Pacific democracies to cooperate and welcomed US-China talks, while insisting Taiwan’s people must have the right to exist. Continued pressure could deepen Taiwan’s focus on deterrence and international partnerships.

06

Why do China and Taiwan have competing claims over Taiwan, and how did the 1949 Chinese Civil War create the current situation?

The article traces the dispute to China’s civil war. In 1949, nationalist forces led by Chiang Kai-shek retreated to Taiwan after losing to Mao Zedong’s communists. Taiwan’s formal name remains the Republic of China. China’s government, meanwhile, insists Taiwan is part of its territory.

That split created the political foundation for competing claims. Taiwan has continued under the Republic of China, while China rejects Taiwan’s separate political position and calls President Lai a separatist. The article says China has never renounced using force to take the island and has rebuffed Lai’s offers of talks.

The historical division still shapes present-day security. Taiwan lives under the threat of attack, while China applies military and grey-zone pressure across the Taiwan Strait. Lai says Taiwan is open to exchanges but will not accept subordination. The result is a continuing dispute over authority, freedom, and the island’s future.

07

What does sovereignty mean in international relations, and why is it central to the dispute over Taiwan’s future?

In international relations, sovereignty means a political authority’s right to govern its territory and people without being subordinated to another power. This broader definition comes from established political knowledge; the article frames the dispute through Taiwan’s freedom, existence, and rejection of subordination.

Sovereignty matters here because China insists Taiwan is part of its territory and has not renounced force to take it. Lai said Taiwan is open to exchanges but will not accept subordination. He also said any US-China talks must respect the right of Taiwan’s people to exist. Those positions describe the core conflict over who should decide Taiwan’s future.

The issue affects more than Taiwan alone. Lai said Taiwan’s resolve concerns whether force can override international rules. China’s pressure, Taiwan’s defence buildup, and foreign involvement all reflect the stakes. The future remains tied to whether coercion changes the status quo or deterrence helps preserve it.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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