Taiwan President Lai Ching-te’s special defense budget is becoming part of a much larger geopolitical debate, just as US President Donald Trump meets Chinese President Xi Jinping in Beijing. Taipei has approved a reduced US$25 billion package that includes major US weapons purchases. However, key indigenous defense programs were cut, triggering criticism from Washington and sharp political divisions inside Taiwan. Supporters of the cuts argue they prevent waste and improve oversight, while critics warn delays weaken deterrence at a dangerous moment. What message does this send to Washington and Beijing? In this episode, we examine Taiwan’s defense spending, how it could shape the Trump–Xi summit, and what it reveals about Taiwan’s readiness in an increasingly uncertain security environment.
*Recorded on May 12, 2026 at 11am Taiwan Standard Time
Host/Senior Producer: Yin Khvat
Consultant: Max Yu
Research Assistant: Ryan Pham
Our guests:
Alexander Huang
- Council on Strategic and Wargaming Studies Chair
Iris Shaw
- Democratic Progressive Party (DPP) US Mission Director
Grant Newsham
- US Marine Corps Colonel (Ret.)