Taiwanese President Lai Ching‑te announced on Wednesday a $40 billion supplementary defence budget, underscoring the island’s determination to strengthen its military capabilities amid escalating pressure from Beijing.
Strengthening Deterrence
The package, valued at T$1.25 trillion (US$39.89 billion), will fund advanced air‑defence systems, new missiles, drones, cyber‑defence upgrades, and asymmetric warfare capabilities. Lai emphasized that the investment is designed to accelerate arms purchases and ensure Taiwan’s forces reach a “high level of readiness” by 2027, a timeline analysts say aligns with Beijing’s military ambitions.
Rising Pressure from Beijing
China, which claims Taiwan as its own territory, has intensified military and political pressure over the past five years, conducting frequent air and naval exercises near the island. Lai warned that history shows compromise in the face of aggression leads only to “enslavement,” declaring: “There is no room for compromise on national security.”
Fiscal Commitment
Government figures project Taiwan’s defence spending will rise to 3.3% of GDP in 2026, the highest since 2009, with a long‑term target of 5% by 2030. This marks one of the most significant sustained military investments in Taiwan’s history, reflecting calls from Washington for allies to shoulder greater responsibility for their own defence.
Strategic Outlook
The supplementary budget signals Taiwan’s intent to bolster resilience against potential aggression while reinforcing its democratic values. Lai framed the move as essential to safeguarding national sovereignty, freedom, and democracy, positioning Taiwan as a frontline state in the Indo‑Pacific’s shifting security landscape.
Sources: Reuters Asharq Al-Awsat · Outlook India Outlook India · Yahoo News Yahoo News UK · DW DW · CNBC CNBC
Taiwanese Premier Lai Ching‑te Official Picture by Liu Shu fu, Office of the President, Attribution 2.0 Generic
