Taiwan's President Lai Ching-te delivered a National Day address on the theme of "a city upon a hill," which scholars viewed as steady in its basic tone, signalling de-escalation rather than escalation in cross-strait relations.

• The address focused on domestic policy achievements and Taiwan's international role, giving Beijing no pretext for launching military coercion.
• Lai Ching-te stated that he welcomes dialogue between the United States and China, taking the view that reducing the risk of war in the Taiwan Strait benefits Taiwan — a clear shift in position.
• He reiterated that increased defence spending is intended to deter war, that Taiwan will not be the first to use force, and rejected the characterisation of Taiwan as a troublemaker.
• Economic figures were a highlight of the speech: trade with the United States has now surpassed that with China and Hong Kong, and Taiwan's stock market has risen to become the world's fourth largest.
• Legislative Yuan Speaker Han Kuo-yu departed from his prepared remarks to accuse the Executive Yuan of "destroying the constitution," which scholars saw as poorly timed — an attempt to build a personal halo at an occasion crowded with foreign guests.

Outlook: On the eve of the Trump-Xi meeting, Taipei has opted for a low-key and steady approach, but the year-end local elections will keep tensions between the executive and the legislature rising.