Lai's remarks came days after US President Donald Trump suggested arms sales to Taiwan could be used as a bargaining chip with China, which claims the island is part of its territory and has threatened to seize it by force.

"Taiwan's future cannot be decided by foreign forces, nor can it be held hostage by fear, division, or short-term interests," Lai said in a speech to mark the second year of his presidency.

Trumps comments in an interview with Fox News and on board Air Force One followed a state visit to Beijing where Chinese President Xi Jinping pressed the US leader not to support Taiwan.

Since then, Lai's government has been on the offensive, insisting that US policy on Taiwan has not changed and that Trump made no commitments to China on arms sales to the island.

Taipei says China is the "root cause" of regional instability and US arms sales are a legal commitment to the defence of the island democracy.