Taiwan to Allocate Additional $40 Billion for Defense

Taiwan will boost its defense budget by $40 billion to counter rising military pressure from China.

President Lai Ching-te stated this in a column for The Washington Post.

The additional funds will be used primarily for major new weapons purchases from the United States.

To counter the threat from China, the Taiwanese government has developed a strategic plan to strengthen the island’s defense capabilities.

By 2026, defense spending is expected to rise to 3.3% of the gross domestic product, and by 2030, it is planned to increase to 5%, which “will become the largest sustained investment in the military sector in Taiwan’s modern history.”

“As part of these efforts, my government will implement a historic additional defense budget of $40 billion, highlighting our commitment to defending Taiwan’s democracy,” Lai Ching-te wrote.

He added that this landmark package will not only fund significant new weapons purchases from the United States but also greatly enhance Taiwan’s asymmetric capabilities.

The President explained that the purpose of the significant defense investments is to strengthen the deterrence system. Taiwan aims to raise the potential cost of an invasion for China and to reduce Beijing’s confidence in its ability to seize the island by force.

Taiwan is systematically building up its military capabilities. Recently, work resumed on a 6,000-ton national frigate due to the deteriorating security situation in the region and worldwide.

The frigate is planned to be equipped with vertical launch systems (likely Mk 41) for launching Taiwan’s Hsiung Feng IIE (HF-2E) cruise missiles.

At the end of October, Taiwan held a ceremonial commissioning of the modernized M1A2T Abrams main battle tanks and formed the first battalion from them.

Previously, Taiwan also announced the receipt of the first mobile Harpoon anti-ship missile systems to strengthen the island’s coastal defense.