Taiwan will build a dome-like air defence system to guard against "hostile threats", President William Lai announced a day after his government warned that China is enhancing its ability to attack the island, BBC reported.

Lai did not mention China by name - but Beijing has long claimed self-governed Taiwan as its own and hasn't ruled out the use of force to take it. 

Lai also said there was a "clear necessity" to boost spending - a likely reference to increasing Chinese incursions into Taiwanese waters and airspace, including military drills that simulate an invasion. 

But defence has become a polarising subject in Taiwan, which remains divided about how the government should respond to the Chinese threat, according to BBC.