Taiwanese President Lai Ching-te declared on Thursday that the island remains firmly committed to protecting its sovereignty and strengthening its defence capabilities amid what he described as growing pressure from China. His remarks followed China’s recent military drills, during which rockets were launched in the direction of Taiwan.

In a New Year’s address broadcast live from the presidential office in Taipei, Lai said the global community is closely observing whether the people of Taiwan have the determination to safeguard their freedom and security. He reaffirmed that his leadership has consistently prioritised the defence of national sovereignty and the enhancement of Taiwan’s military strength.

Lai noted that China’s latest exercises had identified Taiwan’s newly developed combat capabilities as a simulated adversary, highlighting the urgency of expanding defence procurement. He urged opposition lawmakers to approve his proposal to increase Taiwan’s defence budget by US$40 billion, a measure currently stalled in the opposition-controlled parliament.

Responding to a recent US report suggesting China aims to develop the ability to seize Taiwan by 2027, Lai stated that while China’s timeline remains uncertain, the coming year would be decisive for Taiwan. He stressed the importance of preparing for the most serious challenges while maintaining hope for peaceful outcomes.

The president also reiterated Taiwan’s willingness to engage with China through dialogue and cooperation, provided that such engagement occurs on equal terms and with mutual respect, including recognition of Taiwan’s democratic system and way of life. China continues to assert its claim over Taiwan and has not ruled out the use of force to bring the island under its control, a position firmly rejected by Taiwan.

Lai’s speech came shortly after China concluded its military exercises known as Justice Mission 2025. The drills involved the launch of dozens of rockets and the deployment of numerous warships and aircraft near Taiwan, prompting strong reactions from Taiwan and concern among Western allies such as Britain and the European Commission. Taiwan’s government condemned the manoeuvres as a serious threat to regional stability and an act of provocation. Beijing, however, stated that the drills had strengthened its military readiness and would continue to do so.

In his own New Year’s address, Chinese President Xi Jinping reiterated China’s position that reunification with Taiwan is inevitable and cannot be obstructed. The exercises, the largest and closest to Taiwan in recent history, led to the cancellation of multiple domestic flights and required Taiwan to deploy aircraft and naval vessels to monitor the situation. The drills occurred less than two weeks after the United States announced a record US$11.1 billion arms package for Taiwan, with China’s military stating for the first time that the exercises were intended to deter foreign intervention.