Taiwan wants peace and dialogue with China but the government must continue to strengthen the island's defences, President Lai Ching-te said on Tuesday as he completed one year in office.
China has rebuffed Lai's multiple offers for talks. Lai rejects China's sovereignty claims over the democratic and separately governed island, saying only Taiwan's people can decide their future.
The government has warned that Beijing could mark the anniversary with military drills but speaking to reporters at the presidential office in central Taipei, Lai offered a message of peace.
"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," he said.
Taiwan will continue to strengthen its defences as preparing for war is the best way to avoid it, Lai added.
"I also reiterate here - Taiwan is happy to have exchanges and cooperation with China as long as there is reciprocal dignity. Using exchanges to replace hemming in, dialogue to replace confrontation."
Binhua Chen, a spokesperson for Beijing's Taiwan Affairs Office responded by slamming Lai’s "separatist position" promoting independence, calling it "doomed to fail", state broadcaster CCTV said.
China was willing to "engage in dialogue" with Lai, but only on issues "relevant to promoting the reunification of the motherland", Binhua added.
China's defence ministry last week said Lai was a "Taiwan Strait crisis maker" who had increased antagonism and confrontation and undermined peace and stability.
Lai also faces a challenge from possible US tariffs, currently on pause, and said talks with Washington were continuing "smoothly".
The government also plans to establish a sovereign wealth fund to boost the tech-focused economy, he added.
"The government will set up a sovereign fund to create a national investment platform, making full use of Taiwan's industrial strengths, led by the government, in collaboration with the strengths of private enterprises," Lai said, without giving details.
After finishing his media event, Lai attended the opening ceremony for the ongoing Computex trade show, where Taiwan-born Jensen Huang, the CEO of AI darling Nvidia, is the star attraction.
Lai visited the booths of Nvidia suppliers and partners, including Foxconn and Mediatek, chatting with senior executives there.
Last month, China held war games code-named "Strait Thunder-2025A" around Taiwan, the "A" at its end suggesting there could be more to come.
Read moreChinese military surrounds Taiwan in latest military drills
China called its May 2024 drills just after Lai took office "Joint Sword-2024A", and in October of that year staged "Joint Sword-2024B".
In a daily report detailing Chinese military activities, Taiwan's defence ministry said in the past 24 hours it had detected six Chinese planes and 11 vessels near the island.
(FRANCE 24 with Reuters)