Taiwan President Lai Ching-te said Wednesday the country's future cannot be decided by "foreign forces" and vowed to boost defense spending to deter conflict with China.

"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 marking the second year of his presidency. "Taiwan must have the capability to protect itself and to uphold peace and stability in the Taiwan Strait."

Beijing claims the self-ruled island as its territory and has not ruled out using force to seize it.

'No country has the right to annex Taiwan'

Recently, President Donald Trump suggested in an interview with Fox News that US arms sales to Taiwan could be used as leverage in negotiations with Beijing following talks with Chinese President Xi Jinping.