TAIPEI (TVBS News) — President Lai Ching-te (賴清德) addressed the growing threat from China and the Taiwan-U.S. relationship during a virtual interview with The New York Times' DealBook Summit on Thursday (Dec. 4). Lai highlighted the increased frequency and intensity of Chinese military exercises, which now extend beyond the first island chain and into the second, affecting the Indo-Pacific region.
Lai announced on Nov. 26 a US$40 billion defense budget to purchase U.S. weapons and counter China's growing influence. He emphasized that peace is priceless and there are no winners in war, so Taiwan must boost its defense spending and reduce dependence on China to enhance economic resilience. Taiwan's foreign investment in China dropped from 83.8% in 2010 to about 7% last year, aligning with democratic allies to deter conflict and achieve peace.
Responding to remarks by Chinese President Xi Jinping (習近平), Lai asserted that Taiwan must prepare for the worst while hoping for the best to address potential military actions. He expressed gratitude to the international community, including the G7, U.S. President, and Japanese leaders, for their focus on peace and stability in the Taiwan Strait, which he labeled essential for global security and prosperity.
Lai reaffirmed the rock-solid Taiwan-U.S. relationship, thanking Congress for passing the Taiwan Relations Act and President Reagan's Six Assurances. He looks forward to deepening economic ties through tariff negotiations. Under President Trump, Taiwan-U.S. cooperation increased, and Lai hopes to resolve trade deficits and strengthen alliances through future discussions.