Warning against coercion, praise for diplomacy

Taiwan President Lai Ching-te said efforts to persuade Beijing to abandon the use of force against the island would merit a Nobel Peace Prize, urging a sustained diplomatic push alongside credible deterrence. His remarks, delivered in Taipei as the region marked the second anniversary of the Oct. 7 shock that reshaped security debates, came amid renewed focus on cross-strait military activity and U.S. commitments. Lai reiterated that Taipei seeks “peace with dignity,” supports dialogue without preconditions, and will keep strengthening asymmetric defense to raise the cost of aggression. He signaled openness to practical cooperation with like-minded partners on semiconductors and supply-chain resilience, framing economics as defense by other means.

Signals from Washington and Beijing

Lai’s comments coincided with intensifying U.S. diplomacy and sharper warnings from Beijing, which maintains that Taiwan is part of its territory. Analysts see the coming months as a stress test for crisis hotlines, arms deliveries, and efforts to cool aerial and maritime close-encounters. Markets remain sensitive: the Taiwan dollar and tech shares whipsaw on signaling from Washington, Tokyo and European capitals, where leaders are weighing sanctions playbooks should deterrence fail. For Taipei, the strategic objective remains steady: maintain the status quo, harden society against gray-zone pressure, and keep allies aligned on both deterrence and de-escalation tracks.