Taiwan announced a $40 billion supplementary defence budget on Wednesday, underscoring its resolve to strengthen national security amid mounting military pressure from China. President Lai Ching-te said the move reflects Taiwan’s determination to defend itself and safeguard its democratic values.
Strengthening Defence Against Aggression
Beijing, which claims Taiwan as its own territory, has intensified military and political pressure in recent years. Taipei, however, firmly rejects these claims, maintaining that only Taiwan’s people can decide their future.
Presenting the T$1.25 trillion ($39.89 billion) defence package, Lai said that history had shown compromise in the face of aggression only led to “enslavement.”
“There is no room for compromise on national security,” Lai stated during a press conference. “National sovereignty and the core values of freedom and democracy are the very foundation of our nation.”
Defence Minister Wellington Koo said the budget, spanning from 2026 to 2033, would fund missiles, drones, and the new “T-Dome” air defence system.
Boosting Military Readiness and Deterrence
Lai, who detailed the plan in an op-ed in the Washington Post, said the initiative reflects Taiwan’s resolve to stand firm. “It is a struggle between defending democratic Taiwan and refusing to become ‘China’s Taiwan’,” he said.
The de facto US ambassador in Taipei, Raymond Greene, welcomed the announcement, saying it marked a major step toward maintaining peace and stability across the Taiwan Strait. Washington continues to encourage Taiwan to boost its own defence spending, mirroring pressure on European allies.
Taiwan has focused on an “asymmetric” defence strategy, aiming to make its smaller forces more agile and effective against China’s much larger military. For 2026, spending will reach T$949.5 billion ($30.3 billion), accounting for 3.32% of GDP — the first time since 2009 that it surpasses 3%.
Political Debate and Regional Tensions
The proposal must pass Taiwan’s opposition-controlled parliament. Kuomintang chairwoman Cheng Li-wun urged President Lai to “step back from the brink,” stressing that Taiwan’s people “love peace and firmly desire peace.”
China, meanwhile, accused Taipei of following “external forces.” Peng Qingen, spokesperson for China’s Taiwan Affairs Office, said Taiwan was “squandering funds that could improve livelihoods” and warned that such spending “will only plunge Taiwan into disaster.”
President Lai also criticised Beijing’s conduct toward its neighbours, saying its repeated threats and provocations were unworthy of a “responsible major power.”
Tensions remain high as China continues to oppose Lai’s leadership, labelling him a “separatist.” Despite Beijing’s resistance, Lai reiterated that Taiwan’s future must be determined solely by its people.
(with inputs from Reuters)
