Taiwan’s President Lai Ching-te has announced plans to propose an additional $40 billion in defense spending over the next eight years. The move is aimed at bolstering the island’s military capabilities and deterring potential aggression from China. Lai stated that the ultimate goal is to establish defense capabilities that can permanently safeguard democratic Taiwan.
The announcement comes as Taiwan has ramped up defense spending in recent years amid intensified Chinese military pressure. The US has also urged Taiwan to increase its defense spending, with President Donald Trump’s administration pushing for more action to protect the island. Lai said the military aims to achieve a high level of joint combat readiness against China by 2027, a timeline previously cited by US officials as a possible window for a Chinese attack.
The proposed spending will be allocated towards new arms purchases from the US, as well as enhancing Taiwan’s ability to wage asymmetrical warfare. Lai emphasized that the spending is not tied to Taiwan’s ongoing tariff negotiations with the US, but rather aimed at demonstrating the island’s determination to defend itself. The plan includes accelerating the development of a multi-layered air defense system, known as the “T-Dome,” which will help bring Taiwan closer to its vision of an unassailable defense.
The announcement was welcomed by the US envoy in Taiwan, who urged the island’s rival political parties to find common ground on boosting defense spending. However, the proposal may face opposition in parliament, where the main opposition Kuomintang party controls the purse strings. The party’s recently elected chairperson, Cheng Li-wun, has previously opposed Lai’s defense spending plans, citing financial constraints.
The development comes amid a diplomatic spat between Tokyo and Beijing, sparked by remarks from Japanese Prime Minister Sanae Takaichi suggesting Japan could intervene militarily in any attack on Taiwan. The US has approved a $330 million military sale to Taiwan, the first since President Trump’s return to the White House. Taiwan’s government has proposed a defense budget of NT$949.5 billion ($30 billion) for next year, which is 3.32% of the island’s GDP. The additional spending plan announced by Lai will be spread out over eight years and exceeds the $32 billion previously revealed.
