Taiwan cherishes peace but will not surrender its freedom, President Lai Ching-te said on Saturday during his National Day speech. He called for respect for the Taiwanese people's right to exist and said strengthening defence capabilities does not amount to provocation. Beijing condemned his remarks, accusing him of distorting the truth and harbouring “ulterior motives”.

Democratically governed Taiwan faces growing military and political pressure from China, which claims the island as its territory. Beijing's claims face strong opposition from Taipei.

China has a much larger military and continues to expand its arsenal with advanced weapons, including stealth fighter jets, aircraft carriers and missiles. Taiwan is increasing defence spending and modernising its armed forces to counter the threat.

Speaking outside the Presidential Office, Lai said, “Taiwan cherishes peace, but we will not give up our freedom. We are open to exchanges, but will not accept subordination.”

He said Taiwan's determination extended beyond its survival in the face of “authoritarian expansion”. “It is about whether the international community still believes that force cannot override rules, and that the powerful cannot strip a people of their right to determine their own future.”

China's Taiwan Affairs Office accused Lai of misleading the public, exaggerating the threat from mainland China and pursuing “Taiwan independence” separatist thinking. “There is only one China in the world, and Taiwan is part of China – this is the true status quo in the Taiwan Strait,” it said.

China also maintained that Taiwan's future “can and must be decided jointly by all the Chinese people, including our compatriots in Taiwan,” according to state broadcaster CCTV.

Beijing considers Lai a separatist and has rejected his offers of talks. China has never ruled out using force to bring Taiwan under its control.

A senior US administration official said Washington welcomed Lai's commitment to peace and stability across the Taiwan Strait. Referring to China, the official added that “a routine speech is no justification for aggressive or coercive actions”. The United States remains Taiwan's most important international backer despite having no formal diplomatic ties with the island.

Lai did not use his usual statement that neither side of the Taiwan Strait is “subordinate” to the other. Instead, he referred to Jesus' Sermon on the Mount, saying Taiwan must become a “‘city upon a hill,’ built with courage and confidence”.

He said higher defence spending aimed to deter war, not provoke it. “And we are strengthening our self-defence not to abandon dialogue, but to ensure that dialogue can take place based on parity and dignity,” he said. He also urged Indo-Pacific democracies to work together to preserve regional peace and stability.

China conducted military exercises around Taiwan in 2024, shortly after Lai's first National Day speech, but did not repeat them last year. Its latest drills took place in late December after the largest $11-billion US arms deal for Taiwan. US President Donald Trump has yet to approve another proposed $14-billion arms package.

Lai welcomed efforts by Washington and Beijing to manage their rivalry through dialogue following last month's summit. Taiwan's National Day marks the 1911 uprising that overthrew China's last imperial dynasty and led to the establishment of the Republic of China. The government retreated to Taiwan in 1949 after losing the civil war to Mao Zedong's communists. The island retains the formal name Republic of China.