AFP has selected key quotes from its exclusive interview with Lai on Tuesday at the Presidential Office Building in Taipei.

- China's threat -

"The Republic of China (Taiwan) and the People's Republic of China (PRC) are not subordinate to one another. Taiwan is not a part of the PRC, and the PRC does not have the right to annex Taiwan."

"If Taiwan were annexed by China, China's expansionist ambitions would not stop there. Instead, it would become more aggressive, undermining peace and stability in the Indo-Pacific and the rules-based international order."

"If Taiwan were to be annexed, the next countries under threat would be Japan, the Philippines, and others in the Indo-Pacific region, with repercussions eventually reaching the Americas and Europe."

"In this changing world, nations belong to a global community -- a situation in any one country would inevitably impact another."

- US-China talks -

"Taiwan will never be any country's bargaining chip. Taiwan's future can only be decided by the people of Taiwan, and we have confidence in ourselves."

"We welcome and support any dialogue and cooperation that helps preserve the status quo and avoids dangerous unilateral actions."

"In the context of US-China trade competition, China seeks far more from the US than the US does from China. There is no need for the United States to frame Taiwan as a bargaining chip in any discussions with China."

"We believe President Trump is undertaking a difficult peace-building effort, which entails safeguarding US interests and deterring Chinese expansionism in the short term, while seeking peace and stability in the Indo-Pacific in the long term."

"Under the Taiwan Relations Act and Six Assurances, the US commitment to Taiwan and the strength of the bilateral relationship remain rock-solid."

- Defence budget -

"To highlight Taiwan's commitment to our self-defence and determination to safeguard peace and stability in the Indo-Pacific, I proposed a special defence budget, through which we aim to build 'T-Dome', establish an AI-driven defence network, and further promote Taiwan's defence industry."

"Given the state of our economic development, we are fully capable of funding this special budget. This will first enable our defence budget to exceed three percent of GDP, and consequently meet the goal of five percent of GDP by 2030."

"This major defence policy enjoys strong public support."

"Taiwan is responsible for safeguarding our own country. As president and commander-in-chief, proposing this special budget is a demonstration of that resolve."

"In a democratic society, every political party is ultimately accountable to the people. I am therefore confident that this budget will win their support."

- PLA purge -

"China has a military force of roughly two million personnel and around 40 full generals, yet only two are currently in active posts. This is indeed an unusual situation."

"The reasons behind these significant changes within the PLA and their impact on combat readiness will require further observation before any firm conclusions can be drawn."

"Whether internal changes within China's military translate into greater risks for Taiwan ultimately depends on our own defence preparedness and on the credibility of deterrence we build together with our partners, that is the key."

- 2027 invasion timeline -

"There has been much speculation in the international community about whether China will be ready to invade Taiwan by 2027. Such discussions underscore the reality that China's threats against Taiwan remain persistent and their ambitions to annex Taiwan have not changed."

"What matters more is that we must make the best preparations for a worst-case scenario. We must have the capability to deter China's aggression at any time."

"We want to ensure that, for China, there is never a day that is a good day to invade Taiwan."

- Cooperating with Europe -

"European countries are implementing the ReArm Europe Plan. Taiwan is also strengthening its national defence capabilities and I have proposed a special defence budget. Moving forward, I would like Taiwan and Europe to enhance cooperation in the defence industry and on defence technology."

"Europe is making progress on the AI Continent Action Plan. Taiwan has also launched the Ten Major AI Infrastructure Projects. We are eager to work with Europe on joint development in AI and usher in an era of comprehensive smart transformation."

"Taiwan's investments in Europe over the past four years have surpassed total investments made over the previous four decades. Bilateral economic and trade ties have grown closer."

"I hope that Europe will support signing an investment protection agreement, avoidance of double taxation arrangement, and bilateral trade agreement so that economic and trade exchanges between Taiwan and Europe continue to advance."

- Semiconductor investment -

"As long as Taiwan's semiconductor industry maintains its centres for research and development, the most advanced manufacturing processes, and the largest production capacity, it will continue to play an indispensable strategic role in the global semiconductor supply chain."

"At the same time, while the semiconductor industry is one of Taiwan's strengths, it is also Taiwan's responsibility to contribute to global economic prosperity."

"The semiconductor industry operates as an integrated ecosystem. The US leads in research, design capabilities and has a vast market; Japan has materials and equipment; the Netherlands produces advanced manufacturing tools; the Republic of Korea has strengths in memory chip production; and Taiwan specialises in wafer fabrication. No single country in this supply chain can be missing."

"For this reason, the Taiwanese government supports the semiconductor industry's investments in Japan, the US and Europe."