Taiwan's President Lai lashes out against Beijing, pledging $40 billion in additional defense budget

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TAIPEI, TAIWAN - OCTOBER 10: Taiwan President Lai Ching-te (William Lai) delivers a nationalist time address, during the National Day Ceremony, extracurricular the Presidential Office successful Taipei, Taiwan, connected October 10, 2025.

Daniel Ceng | Anadolu | Getty Images

Taiwan volition present a supplementary defence fund of 1.25 trillion Taiwanese dollars ($40 billion) arsenic Beijing accelerates subject preparations adjacent the island, President Lai Ching-te said astatine a property briefing Wednesday.

China has continued to summation subject drills and alleged "gray-zone harassment" astir Taiwan, with the extremity of seizing the land by unit by 2027, Lai said, according to a CNBC translation of his remarks successful Mandarin. The code comes successful the aftermath of a diplomatic quality betwixt China and Japan implicit Taiwan.

Lai added that Beijing had intensified its "infiltration and power campaign," utilizing a scope of tools to interfere successful Taiwan's authorities and nine arsenic it seeks to sway nationalist sentiment and undermine the island's democracy.

He besides cautioned "unprecedented subject buildup" by Beijing and "intensifying provocations successful the Taiwan Strait, successful the East and South China Seas, and crossed the Indo-Pacific."

Beijing considers democratically governed Taiwan arsenic its ain territory and Chinese President Xi Jinping regards its reunification with the mainland "a humanities inevitability." Taiwan rejects those claims.

China has been piling unit connected Taipei and has conducted respective subject drills disconnected the seashore of the land implicit the past fewer years, issuing stern warnings implicit the Taiwan's "provocations for independence."

Lai connected Wednesday vowed to physique up Taiwan's self-defense capabilities successful the look of increasing threats from Beijing, aiming to execute a precocious level of combat readiness by 2027.

China's overseas ministry did not instantly respond to CNBC's petition for comments connected Lai's remarks.

China has been locked successful a diplomatic spat with Japan implicit Taiwan, with Beijing accusing Tokyo of intervening successful its interior affairs aft Japanese Prime Minister Sanae Takaichi said earlier this period that the usage of subject unit successful immoderate Taiwan struggle could beryllium deemed a "survival-threatening situation" for Tokyo. Beijing called the remarks "egregious" and has demanded a retraction.

U.S. President Donald Trump spoke with Xi and Takaichi successful abstracted telephone calls connected Monday. Experts accidental that Xi apt used the telephone to solicit Trump's assistance in influencing Takaichi to code down her rhetoric connected cross-Strait issues.

Shortly earlier Lai's speech, a spokesperson for China's Taiwan Affairs Office of the State Council successful a property briefing reiterated that Beijing "resolutely opposes immoderate effort successful aiding Taiwan's independence," slamming Lai's Democratic Progressive Party for undermining Taiwan's maturation prospects.

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