Taipei, May 21 – Taiwan President Lai Ching-te on Tuesday pledged to pursue peace and dialogue with China, but said the self-governed island must continue to strengthen its defences amid heightened military threats from Beijing.
Marking one year in office, Lai said Taiwan remains open to engagement with China under conditions of “reciprocal dignity” and mutual respect. However, he warned against harboring “dreams or illusions” in the face of growing security challenges.
“I, too, am committed to peace. Because peace is priceless and war has no winners. But when it comes to seeking peace, we cannot have dreams nor illusions,” Lai said at the presidential office in Taipei. “Preparing for war is the best way to avoid it.”
Beijing, which views Taiwan as its own territory, has labeled Lai a “separatist” and rejected his multiple calls for dialogue. China’s Taiwan Affairs Office dismissed Lai’s speech as a “two-faced tactic” and said it would not change the reality that Taiwan is “part of China.”
China’s defence ministry has also accused Lai of escalating tensions and “undermining peace and stability” across the Taiwan Strait.
In recent months, China has ramped up military pressure on Taiwan. The Chinese military conducted war games dubbed Strait Thunder-2025A around the island last month, following earlier drills Joint Sword-2024A and 2024B. Taiwan’s defence ministry reported six Chinese aircraft and 11 naval vessels operating near the island in the past 24 hours.
Amid geopolitical headwinds, Lai also addressed Taiwan’s economic future, announcing plans to establish a sovereign wealth fund to support the island’s technology-driven economy. “The government will set up a sovereign fund to create a national investment platform,” he said, adding it would combine public and private sector strengths.
Lai said ongoing trade talks with the United States, including discussions over potential tariffs, were progressing “smoothly.”
After his remarks, the president attended the opening of the Computex tech trade show in Taipei, where Taiwan-born Nvidia CEO Jensen Huang headlined the event. Lai visited booths of Nvidia’s suppliers and partners, including Foxconn and Mediatek, and spoke with senior company executives.
Taiwan remains a flashpoint in U.S.-China relations, with Washington supplying arms to Taipei while Beijing intensifies military maneuvers near the island. Lai has insisted that Taiwan’s future must be determined by its 23 million people, not dictated by external powers.
