TAIPEI (Taiwan News) — Taiwan President Lai Ching-te (賴清德) reiterated his message of peace through strength in his opening remarks at HFX Taipei, which began on Thursday.

“Taiwan cherishes peace but we also have no delusions about peace,” Lai said. He highlighted Chinese threats in the form of military exercises and gray zone tactics and said the nation would “stand firm and safeguard” its sovereignty and “free and democratic way of life.”

The president pointed out that he made special budget allocations to increase Taiwan’s defense budget to 3% of its GDP. He also established the Whole-of-Society Defense Resilience Committee to enhance resilience in defense, economy, disaster prevention, and democracy.

Lai said he strived to deepen strategic partnerships with other democracies and help form non-red global supply chains to counter expanding authoritarianism. The democratic community “must have strong technological capabilities” to serve as the backbone of national defense and improve economic resilience, he said.

Taiwan is willing to work with democratic partners to form alliances in the AI semiconductor industry, Lai said. It is also ready to establish democratic supply chains in industries related to high-end chips, he added. 

Taiwan does not seek conflict and is open to dialogue “under the principles of parity and dignity,” Lai said. He reaffirmed the status quo and pledged to cooperate with democracies “to greet a bright new era.” 

Taiwan is reportedly considering a major arms package from the US worth between US$7 billion (NT$229 billion) and US$10 billion. Sources familiar with the matter said the sale could include coastal defense cruise missiles and rockets for the High Mobility Artillery Rocket System.