defenseTaiwan is set to strengthen its military with a $40 billion supplementary defence budget, underscoring its commitment to safeguard national sovereignty amid escalating pressure from China. President Lai Ching-te announced the plan on Wednesday, emphasizing that compromising with aggression only leads to “enslavement.”
DefenseThe new T$1.25 trillion ($39.89B) package, covering 2026-2033, will fund advanced missiles, drones, and the state-of-the-art “T-Dome” air defense system. Defence Minister Wellington Koo highlighted that Taiwan’s forces will continue to adopt an asymmetric warfare strategy to maximize agility and strike precision against China’s far larger military.
defenseLai expressed that the defence boost represents a determined stand for democracy, not just a territorial dispute. “It’s about defending democratic Taiwan and refusing to become ‘China’s Taiwan,’” he said.
The 2026 budget alone is projected at T$949.5 billion ($30.3B), reaching 3.32% of GDP, surpassing the 3% threshold for the first time since 2009. The plan now awaits approval from Taiwan’s opposition-led parliament, where voices like Kuomintang chair Cheng Li-wun urge caution and peace.
Internationally, the announcement drew support from the US, with Washington backing Taiwan’s “rapid acquisition of critical asymmetric capabilities.” The move also comes amid regional tensions, as Japan signals potential military involvement if China attacks Taiwan.
Beijing criticized Taiwan’s decision, accusing it of succumbing to “external forces” and warning that weapons spending could harm the island’s economy. Nonetheless, Lai reaffirmed Taiwan’s strong US ties, stating only its people can determine their future, despite repeated rejections of dialogue by Beijing.
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