By Ben Blanchard and Ann Wang TAIPEI, June 30 (Reuters) - Taiwan's President Lai Ching-te warned military cadets on Tuesday not to succumb to China's spying activities and to defend freedom and democracy, speaking at a Cold War-era college originally set up to teach against the perils of communism. Taiwan and China, which views the democratically governed island as its own territory, have long spied on each other, and Taiwan in particular has reported an increased number of Chinese espionage cases, especially in the armed forces.