Taipei — President Lai Ching-te said his administration will push for an extra $40 billion in defense spending over the next few years. The goal is to strengthen Taiwan’s ability to deter a possible attack from China.
Lai said the money will be used for new weapons from the United States and to expand Taiwan’s asymmetrical defense systems. He explained that Taiwan wants to make any plan by Beijing to use force “costly and uncertain.”
China has never ruled Taiwan, but it continues to claim the island as its own and has not ruled out using force.
The announcement comes as tensions rise in the region. Japan and China have been caught in a long diplomatic dispute after Japanese Prime Minister Sanae Takaichi hinted that Japan might step in if Taiwan is attacked.
The proposal also follows Washington’s recent approval of $330 million in parts and equipment for Taiwan, the first such sale since Donald Trump returned to the White House.
Lai’s party, the Democratic Progressive Party (DPP), has already planned to raise defense spending to more than 3 percent of GDP next year and up to 5 percent by 2030. The current proposal for next year is NT$949.5 billion ($30 billion).
The new long-term spending plan, revealed through Lai’s opinion piece in the Washington Post, is even larger than earlier estimates. It includes fast-tracking the “T-Dome,” a multi-layered air defense network meant to strengthen the island’s protection through advanced technology.
Lai said Taiwan remains committed to peace but must also show its resolve to defend itself.
However, passing the budget may be difficult. The opposition Kuomintang (KMT), which favors closer ties with China, holds control of the legislature with the Taiwan People’s Party. KMT chairperson Cheng Li-wun has already questioned the affordability of such a plan, saying Taiwan “doesn’t have that much money.”