TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Taiwan must raise the cost of war and strengthen indigenous defense capabilities to deter China and preserve peace in the Taiwan Strait.
Lai made the remarks in an interview with SET News’ “History & Herstory,” which aired on Sunday, per CNA. The interview was filmed at the Armaments Bureau’s Plant 209, the main production site for armored vehicles like the CM-32 Clouded Leopard.
He emphasized the importance of self-defense, saying the defense budget is not just a set of numbers but reflects the real significance of weapons and equipment. If Taiwan can sufficiently arm its military, it will be able to protect national security and safeguard its citizens.
Lai said promoting the defense industry could also drive future economic development and become another pillar of national security.
Asked about a Pentagon report suggesting China wants the ability to invade Taiwan by 2027, Lai said annexing Taiwan is a Chinese state policy. Historical events such as the 1949 Battle of Guningtou and the 1958 Taiwan Strait Crisis show that Taiwan was defended because the entire population fought alongside the military.
Taiwan has remained secure for decades, and China has not launched a direct attack because it lacked the capability. “If China sets 2027 as the year to be ready for an invasion of Taiwan, then we have only one choice: to keep raising the difficulty so that China can never meet that standard. Taiwan will naturally remain safe,” said Lai.
The president said that beyond Taiwan’s own defense, the US national strategy has roughly four objectives. The first is homeland security, which explains why US defense spending this year exceeds about NT$31.42 trillion (US$1 trillion), partly aimed at building the “Golden Dome.”
The second priority, he said, is ensuring peace and stability in the Indo-Pacific, primarily by preventing China from launching an invasion of Taiwan or expanding through the use of force. The third is collective defense with shared responsibilities, and the fourth is US reindustrialization to maintain the strength needed to lead globally.
He said Taiwan must fulfill its responsibility to protect itself and also has a duty to uphold peace and stability in the Taiwan Strait and security across the Indo-Pacific.
Lai pointed out that Japan’s defense budget for the next fiscal year will exceed NT$1.8 trillion (¥9 trillion), while South Korea is pursuing nuclear-powered submarines. Defense budgets are also rising in the Philippines, Australia, and even across the European Union.
Taiwan faces the greatest threat from China and cannot stand idly by, he said. "That is why we urge the opposition parties to understand the needs of national security and to support the defense budget," said Lai.
Lai concluded by detailing the multi-layered air defense configuration of the “T-Dome” network, per SET News. He said the core priorities of the special defense budget are threefold, including building the T-Dome, developing AI-enabled offensive and defensive systems, and supporting the upgrading and transformation of indigenous industries.





