Taiwan will spend US$40 billion (NT$1.3 trillion) on defence over the next several years, citing rising threats from China.
President Lai Ching‑te said on Wednesday that Taiwan’s security is “non‑negotiable” and pledged to strengthen defences with US support. “This is not an ideological struggle, nor a ‘unification vs independence’ debate, but a struggle to defend ‘democratic Taiwan’ and refuse to submit to being ‘China’s Taiwan’,” he said.
The budget, covering 2026–2033, will fund new missiles, drones, and artificial intelligence upgrades for defence systems. Defence Minister Wellington Koo said it will also improve military procurement and protect Taiwanese citizens abroad from Chinese pressure.
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Lai warned the biggest risk is Taiwan giving in. “History has proven that compromising with aggression only brings war and enslavement,” he said. He added that China’s Hong Kong‑style “one country, two systems” plan is an “inviolable red line” for Taiwan.
The spending will raise defence costs to 3.3% of GDP by 2026, aiming for 5% by 2030. Raymond Greene of the American Institute in Taiwan called it “a major step towards maintaining peace and stability across the Taiwan Strait.”
China criticized the plan. Peng Qingen, spokesperson for the Taiwan Affairs Office, said it “will only plunge Taiwan into disaster.”
Tensions are also rising with Japan over missile plans on Yonaguni Island. Peng said Beijing will defend its sovereignty and “crush all foreign interference.”