Taiwan's president is signaling no retreat on defense, warning that giving in to Beijing would invite more aggression, not less.

• President Lai Ching-te said Taiwan will not seek conflict but will not provoke either, and that compromise only invites aggression.
• He tied Taiwan's security to its chip industry, framing semiconductor leadership as both a business asset and a shared responsibility with democratic allies.
• Taiwan is pushing to modernize its military, invest in asymmetric warfare capabilities, and build broader societal resilience against pressure.
• He called out authoritarian "gray zone" coercion in the Indo-Pacific and linked it to the war in Ukraine as part of a wider test of the free world's resolve.
• The remarks came at a Taipei gathering of the Liberal International assembly, drawing representatives from nearly 50 countries.

Outlook: Expect Taiwan to keep deepening defense ties with democratic partners while avoiding direct provocation of Beijing, with cross-strait tensions remaining a slow-burn risk rather than an immediate flashpoint.