Military

Lai's Security Plan, Record-High Defense Budget Draws Mixed Reactions

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By Fuhua Hung/Alan Lu

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Taiwan President Lai Ching-te unveiled a new security plan featuring a record-breaking special defense budget, but the proposal has drawn mixed reactions.

Taiwan’s Record-High Defense Budget Sparks Mixed Reactions

 

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TAIWAN’S DEFENSE BUDGET

 

REPORTER:

 

A 40 billion US dollar special defense budget. The largest Taiwan has ever proposed.

 

President Lai Ching-te on Wednesday unveiled a new multi-year defense plan, running from 2026 to 2033. He says the budget will fund stronger air-defense systems, investments in asymmetric warfare, and the creation of a China-free defense supply chain.

 

The US has welcomed the move. The de-facto American embassy in Taiwan, several senators, and the House Foreign Affairs Committee all praised it, and Taiwan’s foreign ministry expressed its thanks.

 

The US and Taiwan will continue to closely cooperate under the Taiwan Relations Act and the solid foundation of the Six Assurances to jointly defend peace in the Taiwan Strait and the region as well as stability and prosperity.

 

REPORTER:

 

But not everyone supports the plan.

 

The main opposition Kuomintang, or KMT, says the proposal means taking on huge debt, and that it could risk provoking China.

 

How can we make this sustainable?

 

How can we ensure generational fairness to support such an enormous special defense budget?

 

President Lai has not given us any explanation on this.

 

You’re playing with fire.

 

REPORTER:

 

The proposal came a day after Lai published an op-ed in the Washington Post outlining his defense vision.

 

Both the KMT and the opposition Taiwan People’s Party criticize the move, saying he went straight to the international media before communicating the plan to the public at home.

 

No one, neither the public nor lawmakers, has been able to see concrete budget details.

 

No one expected President Lai Ching-te to announce the defense budget through an op-ed in a US outlet or that it would be increased by another US$40 billion.

 

REPORTER:

 

But some analysts say sharing the budget with international media is a way for Taiwan to show allies abroad it’s willing to defend itself.

 

It’s been almost a year since Trump was elected, almost a full year.

 

And over this past year he has actually had many views about Taiwan, or he has repeatedly pushed for raising Taiwan’s defense budget.

 

So at this moment, the fact that this op-ed was published now basically shows that the suggestions the US has made are ones we are taking onboard.

 

REPORTER:

 

And while the Cabinet approved the budget on Thursday, China is continuing its gray-zone pressure.

 

Beijing’s Taiwan Affairs Office, which handles cross-strait matters, responded to the budget plan, warning it could push Taiwan into a “disastrous situation.”

 

Meanwhile, Taiwan’s defense ministry reported spotting 17 Chinese military aircraft and six vessels operating near the country between Wednesday and Thursday morning.

 

Despite some opposition to the budget, analysts say that strengthening Taiwan’s defense has become a rare point of consensus amid ongoing pressure from China.