Full Text of President Lai's Second Anniversary Address: Anchoring Taiwan's Future with Four Major National Strategies
On May 20th, his second anniversary in office, President Lai Ching-te delivered a speech at the Presidential Office to re-anchor Taiwan's future development. He proposed four major national strategies covering cross-strait relations, the economy, population, and national defense. He emphasized that Taiwan's future must be decided by its 23 million people, declared the maintenance of peace and stability in the Taiwan Strait, and rejected united front tactics that 'package unification in peace.' Economically, he will promote a NT$100 billion plan for SME transformation and noted Taiwan's strong economic growth. Socially, to counter the low birth rate, a monthly growth allowance of NT$5,000 per person for ages 0 to 18 will be proposed. In defense, he pledged to reinforce the defense budget, promote indigenous defense capabilities, and build an intelligent defense force to safeguard peace through strength.
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- 📰 Published: May 20, 2026 at 14:55
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Today marks the second anniversary of my inauguration as President of the Republic of China. I am deeply grateful to the people of our nation for giving me the opportunity to bear responsibility for the country and serve its citizens. Two years ago today, I took my oath at the Presidential Office, pledging to all our countrymen that I would abide by the Constitution, faithfully perform my duties, enhance the people's welfare, and defend the nation, living up to the trust placed in me. For the past two years, this oath has never left my heart, and not for a moment have I shirked this responsibility, no matter how difficult the challenges.
This year is also a very important historical moment for Taiwan. In 1996, 30 years ago, tens of millions of Taiwanese people, unafraid of China's missile threats, bravely went to the polls and, with a turnout of over 76%, completed the first direct presidential election, transforming the Republic of China, Taiwan, into a fully democratized new nation where sovereignty resides with the people. Over these 30 years, the people of Taiwan have written their own democratic history with every ballot; Taiwanese society has proven, through successive peaceful transfers of power, that its democracy is mature and irreversible. No matter how great the challenges, Taiwan remains firm, confident, and dignified in walking its own path, marching toward the world, and bravely pursuing its future.
Every step Taiwan has taken over the past two years has not been easy. The world situation is changing rapidly; authoritarian expansion, wars and conflicts, and the reorganization of supply chains, coupled with climate change, energy transition, and the wave of artificial intelligence, are constantly testing our nation's competitiveness and resilience. At the same time, due to different national directions between the ruling and opposition parties, the legislature has faced an unprecedented deadlock, preventing the smooth implementation of national appointments, budgets, and bills. Therefore, Taiwan faces not just a single challenge, but a comprehensive test of whether the nation can stand firm in the midst of change and continue to move forward amidst division. But I want to report to our citizens: Taiwan has not retreated; Taiwan is moving forward.
Over the past two years, we have insisted on three things:
First, safeguarding our democratic and free way of life. Democracy is Taiwan's most important name. Democracy is not a gift from heaven, but something earned through the sacrifice, dedication, and brave struggle of generation after generation. 30 years ago, the people chose to determine the nation's direction through democracy; today, we must use the power of democracy to determine the heights of Taiwan's future. Taiwan's future cannot be decided by external forces, nor can it be held hostage by fear, division, or short-term interests. Taiwan's future must be jointly decided by its twenty-three million people. I am well aware that a democratic society will always have differing opinions, and there will always be competition between the ruling and opposition parties. But while parties can compete, the nation cannot be divided; while stances can differ, the will to protect Taiwan cannot. Facing external threats, we should all unite to defend our common bottom line and stand firmly on the side of our national interests.
Second, maintaining the status quo of peace and stability in the Taiwan Strait. Maintaining peace and stability in the Taiwan Strait and preventing external forces from changing the status quo is Taiwan's national strategic goal. Taiwan is a responsible member of the international community, not a party that undermines stability. Taiwan is willing to engage in healthy and orderly exchanges with China under the principles of equality and dignity, but firmly rejects united front tactics that 'package unification in peace.' History tells us that peace cannot rely on goodwill alone, nor can it be built on concessions and illusions. Peace requires unity to strengthen national power, a clear national will, and close cooperation with international democratic partners to achieve true peace through strength. For thirty years since the direct presidential election, the people of Taiwan have proven to the world time and again with their votes: we cherish peace, but we will not give up our freedom; we are willing to engage in dialogue, but we will not accept being belittled; we pursue stability, but we will not sacrifice our sovereignty and democratic way of life. This is Taiwan's bottom line and its clearest stance before the world.
Therefore, over the past two years, the government has continued to promote defense reforms, strengthen asymmetric warfare capabilities, enhance all-out defense resilience, and build a more complete national security network. Defense reform is not just about updating weapons, but a comprehensive enhancement of personnel, training, logistics, systems, and social support. We are increasing defense investment because we are alert to threats being greater than ever before, not for provocation, but to avoid war. We are strengthening our indigenous defense capabilities not to escalate conflict, but to protect our people. We cooperate with like-minded countries not to oppose anyone, but to maintain peace and stability in the Taiwan Strait and the Indo-Pacific.
Regarding the Legislative Yuan's failure to fully pass the special defense budget act, which will inevitably and severely impact the status quo of peace and stability in the Taiwan Strait, the government will take remedial action. We will propose another special statute and, through supplementary budgets and increased annual budgets, conduct commercial purchases, commissioned projects, international cooperation, and promote the autonomy of our defense industry to produce land, sea, and air unmanned vehicles, and establish an intelligent and sustainable defense force. 'Taiwan must become a country with the strength to protect itself and maintain peace and stability in the Taiwan Strait.' This is not just my promise to the Taiwanese people, but also the determination Taiwan should show to the international community. A while ago, I boarded the first indigenous submarine, the Hai Kun. What I saw was not just a submarine, but the result of indigenous defense achieved through the tireless, pressure-filled work of countless engineers and our brothers and sisters in the armed forces. The Hai Kun submarine carries Taiwan's courage to not bow to pressure, and our determination to build a safe home for the next generation with our own hands. I want to express my highest respect to our brothers and sisters in the armed forces. Whether at sea, in the air, in the mountains, on the outlying islands, or in every unseen post, you are not just guarding borders and airspace, but the daily peaceful life of twenty-three million people. The nation's security comes from your professionalism, discipline, and sacrifice. As Commander-in-Chief, I will continue to be the military's staunchest supporter, ensuring our armed forces have better equipment, better training, and better care, and that our service members receive the respect they deserve from society.
Third, developing the economy and building a more resilient, competitive, and caring Taiwan. Prosperity is the people's deepest expectation. Over the past two years, we have faced global economic changes, actively improved the investment environment, implemented industrial innovation and transformation, and promoted a national economic strategy to 'be based in Taiwan, deploy globally, and market to the world.' Semiconductors, artificial intelligence, the defense industry, security control, and next-generation communications have all become irreplaceable key forces for Taiwan in the global supply chain. Taiwan is not just a manufacturing base; it must become an innovation hub. Taiwan is not just a link in the supply chain; it must become a trusted core partner of the democratic technology camp. Now, this direction is already showing results. Last year, our full-year economic growth rate was 8.68%, the consumer price index (CPI) was 1.6%, the Gini coefficient remained stable, the employment situation was the best in 15 years, and our per capita GDP has already surpassed Japan and South Korea! Taiwan's economic growth rate in the first quarter of this year was 13.69%, the highest for a single quarter in 39 years. The estimated annual economic growth for this year is over 7%, with a total value of NT$32 trillion, making us an important global economy. This excellent result is the fruit of the entire nation's collective effort! It is also the result of us bravely and confidently embracing the world and rejecting dependence on a single market.
For many years, I have never forgotten the hardworking figures in every post and corner of society. I deeply understand that impressive industrial achievements cannot just remain on paper; national economic growth is not about letting a few stand taller, but must be felt by the people and allow more people to stand more stably. Therefore, after taking office, I have actively expanded social investment, continuing to promote wage increases, tax cuts, housing support, long-term care upgrades, childcare burden reduction, and education investment. I have also promoted the 'SME and Micro-enterprise Diversified Revitalization and Development Plan' to help SMEs, traditional industries, and service industries adopt digital tools, carbon reduction technologies, and international market resources, so that transformation is not a privilege of a few industries but an upgrade for the entire nation's economy. I will soon propose a NT$100 billion plan to accelerate the upgrading and transformation of SMEs, micro-enterprises, and traditional industries, and to have the tech industry drive traditional industries, further implementing national development into all trades and professions, into the lives of every family, into the opportunities for all young generations, and into the care for the vast number of workers, farmers, fishermen, the elderly, and the disadvantaged.
Bravely pursuing the future also means we must bravely face new challenges in population structure, healthcare, and social security. On the path to a 'Healthy Taiwan,' the government will continue to invest in health, improve the medical environment, strengthen medical manpower, implement the three-shift nurse-to-patient ratio, and promote smart healthcare and tiered care, so that healthcare is not just about treating illness but a complete support system that guards every person from birth, growth, work, to old age. The sustainability of the National Health Insurance and medical resilience are also part of national resilience; safeguarding the people's health is safeguarding the nation's future. Facing the challenge of a low birth rate, the government will soon propose a new population strategy for Taiwan—the 'Family Support Chapter.' One of the measures is the decision to provide a growth allowance for ages 0 to 18, NT$5,000 per person per month. We hope to provide assistance in marriage, pregnancy, child-rearing, friendly workplaces, and housing for families, to balance work and family, and let young people dare to marry, dare to have children, dare to raise them, and dare to pursue happiness. In terms of climate and energy transition, we will also move forward pragmatically. Taiwan needs a stable power supply and a carbon reduction transition; we must support industrial development and also bear generational responsibility. Facing the electricity demand brought by economic development, artificial intelligence, and high-performance computing, the government will proceed based on scientific evidence, legal procedures, and social communication.
This year is also a very important historical moment for Taiwan. In 1996, 30 years ago, tens of millions of Taiwanese people, unafraid of China's missile threats, bravely went to the polls and, with a turnout of over 76%, completed the first direct presidential election, transforming the Republic of China, Taiwan, into a fully democratized new nation where sovereignty resides with the people. Over these 30 years, the people of Taiwan have written their own democratic history with every ballot; Taiwanese society has proven, through successive peaceful transfers of power, that its democracy is mature and irreversible. No matter how great the challenges, Taiwan remains firm, confident, and dignified in walking its own path, marching toward the world, and bravely pursuing its future.
Every step Taiwan has taken over the past two years has not been easy. The world situation is changing rapidly; authoritarian expansion, wars and conflicts, and the reorganization of supply chains, coupled with climate change, energy transition, and the wave of artificial intelligence, are constantly testing our nation's competitiveness and resilience. At the same time, due to different national directions between the ruling and opposition parties, the legislature has faced an unprecedented deadlock, preventing the smooth implementation of national appointments, budgets, and bills. Therefore, Taiwan faces not just a single challenge, but a comprehensive test of whether the nation can stand firm in the midst of change and continue to move forward amidst division. But I want to report to our citizens: Taiwan has not retreated; Taiwan is moving forward.
Over the past two years, we have insisted on three things:
First, safeguarding our democratic and free way of life. Democracy is Taiwan's most important name. Democracy is not a gift from heaven, but something earned through the sacrifice, dedication, and brave struggle of generation after generation. 30 years ago, the people chose to determine the nation's direction through democracy; today, we must use the power of democracy to determine the heights of Taiwan's future. Taiwan's future cannot be decided by external forces, nor can it be held hostage by fear, division, or short-term interests. Taiwan's future must be jointly decided by its twenty-three million people. I am well aware that a democratic society will always have differing opinions, and there will always be competition between the ruling and opposition parties. But while parties can compete, the nation cannot be divided; while stances can differ, the will to protect Taiwan cannot. Facing external threats, we should all unite to defend our common bottom line and stand firmly on the side of our national interests.
Second, maintaining the status quo of peace and stability in the Taiwan Strait. Maintaining peace and stability in the Taiwan Strait and preventing external forces from changing the status quo is Taiwan's national strategic goal. Taiwan is a responsible member of the international community, not a party that undermines stability. Taiwan is willing to engage in healthy and orderly exchanges with China under the principles of equality and dignity, but firmly rejects united front tactics that 'package unification in peace.' History tells us that peace cannot rely on goodwill alone, nor can it be built on concessions and illusions. Peace requires unity to strengthen national power, a clear national will, and close cooperation with international democratic partners to achieve true peace through strength. For thirty years since the direct presidential election, the people of Taiwan have proven to the world time and again with their votes: we cherish peace, but we will not give up our freedom; we are willing to engage in dialogue, but we will not accept being belittled; we pursue stability, but we will not sacrifice our sovereignty and democratic way of life. This is Taiwan's bottom line and its clearest stance before the world.
Therefore, over the past two years, the government has continued to promote defense reforms, strengthen asymmetric warfare capabilities, enhance all-out defense resilience, and build a more complete national security network. Defense reform is not just about updating weapons, but a comprehensive enhancement of personnel, training, logistics, systems, and social support. We are increasing defense investment because we are alert to threats being greater than ever before, not for provocation, but to avoid war. We are strengthening our indigenous defense capabilities not to escalate conflict, but to protect our people. We cooperate with like-minded countries not to oppose anyone, but to maintain peace and stability in the Taiwan Strait and the Indo-Pacific.
Regarding the Legislative Yuan's failure to fully pass the special defense budget act, which will inevitably and severely impact the status quo of peace and stability in the Taiwan Strait, the government will take remedial action. We will propose another special statute and, through supplementary budgets and increased annual budgets, conduct commercial purchases, commissioned projects, international cooperation, and promote the autonomy of our defense industry to produce land, sea, and air unmanned vehicles, and establish an intelligent and sustainable defense force. 'Taiwan must become a country with the strength to protect itself and maintain peace and stability in the Taiwan Strait.' This is not just my promise to the Taiwanese people, but also the determination Taiwan should show to the international community. A while ago, I boarded the first indigenous submarine, the Hai Kun. What I saw was not just a submarine, but the result of indigenous defense achieved through the tireless, pressure-filled work of countless engineers and our brothers and sisters in the armed forces. The Hai Kun submarine carries Taiwan's courage to not bow to pressure, and our determination to build a safe home for the next generation with our own hands. I want to express my highest respect to our brothers and sisters in the armed forces. Whether at sea, in the air, in the mountains, on the outlying islands, or in every unseen post, you are not just guarding borders and airspace, but the daily peaceful life of twenty-three million people. The nation's security comes from your professionalism, discipline, and sacrifice. As Commander-in-Chief, I will continue to be the military's staunchest supporter, ensuring our armed forces have better equipment, better training, and better care, and that our service members receive the respect they deserve from society.
Third, developing the economy and building a more resilient, competitive, and caring Taiwan. Prosperity is the people's deepest expectation. Over the past two years, we have faced global economic changes, actively improved the investment environment, implemented industrial innovation and transformation, and promoted a national economic strategy to 'be based in Taiwan, deploy globally, and market to the world.' Semiconductors, artificial intelligence, the defense industry, security control, and next-generation communications have all become irreplaceable key forces for Taiwan in the global supply chain. Taiwan is not just a manufacturing base; it must become an innovation hub. Taiwan is not just a link in the supply chain; it must become a trusted core partner of the democratic technology camp. Now, this direction is already showing results. Last year, our full-year economic growth rate was 8.68%, the consumer price index (CPI) was 1.6%, the Gini coefficient remained stable, the employment situation was the best in 15 years, and our per capita GDP has already surpassed Japan and South Korea! Taiwan's economic growth rate in the first quarter of this year was 13.69%, the highest for a single quarter in 39 years. The estimated annual economic growth for this year is over 7%, with a total value of NT$32 trillion, making us an important global economy. This excellent result is the fruit of the entire nation's collective effort! It is also the result of us bravely and confidently embracing the world and rejecting dependence on a single market.
For many years, I have never forgotten the hardworking figures in every post and corner of society. I deeply understand that impressive industrial achievements cannot just remain on paper; national economic growth is not about letting a few stand taller, but must be felt by the people and allow more people to stand more stably. Therefore, after taking office, I have actively expanded social investment, continuing to promote wage increases, tax cuts, housing support, long-term care upgrades, childcare burden reduction, and education investment. I have also promoted the 'SME and Micro-enterprise Diversified Revitalization and Development Plan' to help SMEs, traditional industries, and service industries adopt digital tools, carbon reduction technologies, and international market resources, so that transformation is not a privilege of a few industries but an upgrade for the entire nation's economy. I will soon propose a NT$100 billion plan to accelerate the upgrading and transformation of SMEs, micro-enterprises, and traditional industries, and to have the tech industry drive traditional industries, further implementing national development into all trades and professions, into the lives of every family, into the opportunities for all young generations, and into the care for the vast number of workers, farmers, fishermen, the elderly, and the disadvantaged.
Bravely pursuing the future also means we must bravely face new challenges in population structure, healthcare, and social security. On the path to a 'Healthy Taiwan,' the government will continue to invest in health, improve the medical environment, strengthen medical manpower, implement the three-shift nurse-to-patient ratio, and promote smart healthcare and tiered care, so that healthcare is not just about treating illness but a complete support system that guards every person from birth, growth, work, to old age. The sustainability of the National Health Insurance and medical resilience are also part of national resilience; safeguarding the people's health is safeguarding the nation's future. Facing the challenge of a low birth rate, the government will soon propose a new population strategy for Taiwan—the 'Family Support Chapter.' One of the measures is the decision to provide a growth allowance for ages 0 to 18, NT$5,000 per person per month. We hope to provide assistance in marriage, pregnancy, child-rearing, friendly workplaces, and housing for families, to balance work and family, and let young people dare to marry, dare to have children, dare to raise them, and dare to pursue happiness. In terms of climate and energy transition, we will also move forward pragmatically. Taiwan needs a stable power supply and a carbon reduction transition; we must support industrial development and also bear generational responsibility. Facing the electricity demand brought by economic development, artificial intelligence, and high-performance computing, the government will proceed based on scientific evidence, legal procedures, and social communication.