Taiwan will introduce a $40 billion supplementary defence budget to underscore its determination to defend itself in the face of a rising threat from China, President Lai Ching-te said on Wednesday.

China, which views Taiwan as its own territory, has ramped up military and political pressure over the past five years to assert its claims, which Taipei strongly rejects.

As Taiwan faces calls from Washington to spend more on its own defence, mirroring US pressure on Europe, Lai said in August he hoped for a boost in defence spending to 5% of gross domestic product by 2030.

Unveiling the T$1.25 trillion ($39.89 billion) package, Lai said history had proven that trying to compromise in the face of aggression brought nothing but “enslavement”.

“There is no room for compromise on national security,” he said at a press conference in the presidential office.

“National sovereignty and the core values of freedom and democracy are the very foundation of our nation.”

Lai, who first announced the new spending plan in an op-ed comment in the Washington Post on Tuesday, said Taiwan was showing its determination to defend itself.

Lai had previously flagged extra defence spending, but had not given details.

The de facto US ambassador in Taipei, Raymond Greene, wrote on Facebook that the United States supports Taiwan’s “rapid acquisition of critical asymmetric capabilities”.

“Today’s announcement is a major step towards maintaining peace and stability across the Taiwan Strait by strengthening deterrence,” he added.

Taiwan has been modernising its armed forces to push an “asymmetric” approach to warfare to make its forces, which are much smaller than China’s, agile and able to pack a greater and more targeted punch.