Beijing and Taipei have been spying on each other for decades, but experts say the threat to Taiwan is greater given the risk of a Chinese invasion.
The Democratic Progressive Party said its Central Evaluation Committee had agreed unanimously to expel the five members to "safeguard party discipline and national security".
"The current international situation is grim, and Taiwan is facing threats from the Chinese Communist Party," the DPP said in a statement.
"The actions of those involved in the (spying) cases not only violated the laws of our country, but also clearly violated the discipline and core values of our party."
Among the five accused are a former aide to National Security Council chief Joseph Wu when he was foreign minister, as well as a person who had worked for Lai when he was vice president and then president, the semi-official Central News Agency reported.
The DPP did not say if the five had been charged and no one in the Taipei District Prosecutors Office was immediately available to comment.
China claims self-ruled Taiwan is part of its territory and has threatened to use force to annex it. Taiwan also accuses China of using espionage, cyberattacks and disinformation to weaken its defences.
The number of people prosecuted for spying for Beijing has risen sharply in recent years, with retired and serving members of Taiwan's military the main targets of Chinese infiltration efforts, official figures show.
Taiwan's National Security Bureau said previously 64 people were prosecuted for Chinese espionage last year, compared with 48 in 2023 and 10 in 2022.
In 2024, they included 15 veterans and 28 active service members, with prison sentences reaching as high as 20 years.
Taiwan says 'willing' to talk to China as island boosts defences
Taipei (AFP) May 20, 2025 -
Taiwan is prepared to talk to China as equals but will continue to build up its defences, the island's President Lai Ching-te said Tuesday as he marked his first year in office.
Lai, a staunch defender of Taiwan's sovereignty and detested by Beijing, delivered remarks on the need "to prepare for war to avoid war" and also bolster the island's economic resilience.
After promising to stand up to China and defend democracy at his inauguration, Lai insisted Taiwan was "willing" to communicate with Beijing if there was "parity and dignity".
China said on Tuesday it was "willing to engage in dialogue" with Taiwan but on condition.
Chen Binhua, a spokesperson for Beijing's Taiwan Affairs Office, also slammed Lai's "separatist position" that promoted "economic decoupling" across the Taiwan Strait, according to CCTV.
Lai called peace "priceless" in his speech but added "we cannot have illusions" and vowed to continue strengthening defence.
Taiwan will "actively cooperate with international allies, shoulder to shoulder to exert the power of deterrence, to prepare for war to avoid war, and to achieve the goal of peace," Lai told journalists.
China, which claims Taiwan is part of its territory and has threatened to use force to annex it, has held several rounds of large-scale military drills around the island since Lai took office.
Taiwan's coast guard warned Monday that China may use "cognitive warfare" to "disrupt public morale" around Lai's anniversary.
Shortly before Lai's remarks, Taiwanese coast guard personnel arrested two Chinese nationals "attempting to sneak onto" an island in the Taiwan-administered Kinmen archipelago, several kilometres off China's mainland.
As Taiwan comes under pressure from Washington to move more factories to US soil and reduce their trade imbalance, Lai said Taiwan would not "put all our eggs in one basket".
Taiwan would increase its economic resilience by diversifying markets and boosting domestic demand.
Lai also announced plans to set up a sovereign wealth fund to "boost Taiwan's economic momentum", but did not provide details about its size.
The president has seen his first term in the top job engulfed in domestic political turmoil as opposition parties, which control the parliament, seek to stymie his agenda.
- Falling approval rating -
The main opposition Kuomintang party (KMT) has called Lai a "dictator" and accused him of pushing Taiwan closer to war with China, while Lai's Democratic Progressive Party (DPP) suggests the KMT is a tool of Beijing.
On Tuesday, Lai said the government wanted to "strengthen cooperation among political parties" and that his national security team would start providing "important" briefings to the opposition.
The KMT said the island's challenges "cannot be solved after holding one briefing", but acknowledged Lai had "finally tried to take a small step" towards resolving frictions.
"We also hope that President Lai will have more courage and take a big step to stop judicial persecution and political hatred," KMT said in a statement.
Analysts said Lai's remarks were more restrained than in previous speeches, which have drawn criticism from Beijing.
"Lai is dialling down the messaging and keeping Taiwan's head low to avoid getting into anybody's crosshairs amid this geopolitical uncertainty," Wen-Ti Sung, a nonresident fellow at the Atlantic Council's Global China Hub, told AFP.
Lai has seen his approval rating fall to 45.9 percent from 58 percent nearly a year ago, according to a survey by Taiwanese Public Opinion Foundation in April.
His disapproval rating rose to 45.7 percent -- the highest since he took office -- which the polling group linked to the Lai government's handling of US tariffs on Taiwan and the DPP's unprecedented recall campaign targeting the opposition.
DPP supporters are seeking to unseat around 30 KMT lawmakers through a legal process that allows legislators to be removed before the end of their term.
The DPP only needs to win six seats to wrest back control of parliament.
A rival campaign to unseat 15 DPP members has been embroiled in controversy after KMT staffers were accused of forging the signatures of dead people.
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