Taiwanese President Lai Ching-te stated in his National Day address that Taiwan "cherishes peace" but "will not give up freedom," vowing not to tolerate aggression in the Taiwan Strait. He noted that increased defense spending (a record NT$1.1 trillion, approximately US$34.5 billion, or over 3% of GDP, by the 2027 budget) is intended to deter war, not provoke it. Lai Ching-te said that China continues to exert pressure through military and "gray zone" activities, attempting to alter the status quo in the Taiwan Strait, and emphasized that peace cannot rely solely on wishes, nor can tolerance become an excuse for further aggression by invaders.