Taiwan Unveils $40 Billion Defense Boost Amid Rising Threats from China

Taipei: Taiwan’s government announced on Wednesday that it will allocate an additional $40 billion for defense spending to counter the growing threat from China. President Lai Ching-te emphasized that national security and the defense of freedom and democracy are the cornerstones of Taiwan’s sovereignty.

Strengthening Defense in Face of Threats
Speaking from the Presidential Office, Lai Ching-te warned that any attempt to appease aggression historically leads only to subjugation. “There is no room for compromise when it comes to national security,” he said. Taiwan’s move comes as China continues to significantly ramp up its military preparations, not only threatening Taiwan but also signaling its power to the United States, Japan, and the Philippines.

President Lai previously wrote in The Washington Post that Taiwan is committed to its defense and intends to demonstrate this by bolstering its military capabilities. “This is a struggle to protect democratic Taiwan and to refuse becoming part of China,” he stated, adding that the conflict is not merely ideological or about unification versus independence.

China Reacts Strongly
China criticized the announcement, warning that Taiwan is heading toward disaster. Chinese officials have repeatedly urged Taiwan to use its resources for improving living standards and economic development rather than weapons purchases. Spokesperson Peng said, “Taiwan is using these funds to acquire arms, which will only lead to calamity.”

US-Taiwan Defense Dynamics
The United States has been urging Taiwan to increase its defense spending, similar to the pressure it applies on European allies. Taiwan plans to raise defense expenditure to 5% of GDP by 2030, with $30 billion earmarked for 2026, accounting for 3.32% of GDP, marking the first time since 2009 that Taiwan’s defense budget surpasses the 3% threshold.

Although Taiwan’s security is guaranteed by the United States, only one arms deal has been approved since former President Trump came into office, raising concerns about the reliability of American security guarantees. Currently, Taiwan receives most of its military equipment from the U.S.