TAIPEI (Realist English). President Lai Ching-te announced that Taiwan will introduce a supplementary $40bn defence budget, signaling what he called an unambiguous commitment to defend the island as Chinese military pressure intensifies.
In an op-ed for The Washington Post, Lai said the package will finance “significant” new arms purchases from the United States and substantially expand Taiwan’s asymmetric warfare capabilities — the core of its strategy to deter any potential use of force by Beijing.
Over the past five years, China has sharply escalated military exercises, air and naval incursions, and political coercion aimed at asserting its claim over the self-ruled island. Taiwan rejects Beijing’s sovereignty claim, while facing parallel pressure from Washington to increase its own defence outlays.
Lai reiterated his earlier goal of raising defence spending to 5% of GDP by 2030. For 2026, the government has proposed a T$949.5bn ($30.25bn) budget — equal to 3.32% of GDP, the first time spending has exceeded 3% since 2009.
The new package, he wrote, intends to “insert greater costs and uncertainties into Beijing’s decision-making” on any potential use of force.
While reaffirming Taipei’s willingness to pursue cross-strait dialogue, Lai stressed that “democracy and freedom remain non-negotiable.” Citing former U.S. Presidents Donald Trump and Ronald Reagan, he argued that “peace through strength” must guide Taiwan’s security posture.
Under U.S. law, Washington is obligated to provide Taiwan with defensive capabilities despite the absence of formal diplomatic ties, and U.S.–Taiwan military cooperation has continued to deepen.