Lai Proposes Major Defense Budget to 'Comprehensively Counter' China's Pressure

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By Fuhua Hung/Alan Lu

Taiwan President Lai Ching-te has unveiled a sweeping plan to strengthen national security, citing growing military pressure and intimidation from China.

Taiwan Announces Major New Defense Plan

 

REPORTER:  

President Lai Ching-te has laid out a major new plan to safeguard Taiwan, citing China’s increasing military threats and efforts to intimidate the country.

 

REPORTER:  

Taiwan is raising the stakes on its defense and working to counter China’s push to take the country – that's the message from President Lai Ching-te, who announced his new defense plan for Taiwan following a top-level national security meeting on Wednesday.

 

REPORTER:  

Lai says Beijing aims to take Taiwan by force by 2027, and has been stepping up preparations to accomplish that goal, including increased military exercises and gray-zone harassment around Taiwan.  

And he says that's why Taiwan is setting its own timeline: Over the next eight years, Lai says Taiwan will build a strong and capable defense force.  

The first goal is to achieve high readiness levels for Taiwan’s joint military forces by 2027, effectively deterring threats from China.  

The second goal is to move forward in building a highly resilient and fully deterrent defense capability by 2033.

 

REPORTER:  

Lai’s announcement comes amid heightened Chinese military activity in the region. Between Tuesday and Wednesday morning, Beijing sent 20 jets near Taiwan. It is also conducting military drills in the Yellow and Bohai Seas as tensions with Japan soar.  

Joined by President Lai on Wednesday was defense minister Wellington Koo, who confirmed the details of a planned special budget worth around 40 billion US dollars, an unprecedented amount.  

Koo says the budget, which would run from 2026 to 2033, would be used to develop and purchase the weapons it needs to fend off a Chinese attack. That includes the ‘T-Dome,’ a new multi-layered air defense system, as well as drones. And he says Taiwan will expand cooperation with the US on defense production.  

The purpose of setting up this budget is to secure a one-time allocation of funds, ensure stable and concentrated resources, and accelerate the acquisition of needed defense capabilities.

 

REPORTER:  

The Lai administration’s plans have already received praise from US policymakers and representatives.  

Raymond Greene, director of the American Institute in Taiwan, the US’ de-facto embassy here, welcomed the announced budget in a Facebook post.  

And on X, the US House Foreign Affairs Committee said the plan demonstrates Taiwan’s willingness to enhance its defense capabilities.  

But the budget, set to be passed by the Cabinet soon, will need the approval of Taiwan’s opposition-controlled legislature.  

Experts say the opposition parties are likely to have some disagreements, but passing the budget shouldn’t be difficult as long as there’s effective communication.  

Because the funding isn’t being allocated all at once, it basically means you just need to lay out your funding schedule and explain to them roughly what you plan to do and where the money will be going. Doing that should more or less resolve the issue.

 

REPORTER:  

China’s intimidation of Taiwan goes beyond military activity, though. Officials say Beijing also engages in disinformation campaigns, legal and psychological warfare, and cross-border suppression.  

Taiwanese authorities say they will improve communication with the public, introduce legislation to counter China’s legal warfare, and strengthen international cooperation to better respond to the escalating threats.  

As Beijing continues to ramp up pressure across the Indo Pacific, Taipei is hoping its new plan and proposed budget will signal its determination to defend itself against any moves by China.