Richard Sanders
In a significant move to bolster national security, President William Lai (賴清德) announced yesterday a special defense budget of NT$1.25 trillion (approximately US$39.9 billion), which aims to enhance Taiwan’s military capabilities, including a state-of-the-art “Taiwan dome” air defense system. This funding, set to span eight years from next year through 2033, was detailed during a news conference at the Presidential Office in Taipei.
With ongoing threats from China, Lai emphasized the need for heightened defense measures and reiterated his commitment to increase military spending to 5 percent of GDP as tensions escalate in the region. “The threats from China to Taiwan and the broader Indo-Pacific area are intensifying,” he stated, referencing recent military incursions and disinformation campaigns affecting Japan, the Philippines, and the Taiwan Strait, which have contributed to widespread regional unease.
Lai remarked that, as a pivotal component of the first island chain, Taiwan must take on greater self-defense responsibilities. In line with calls from the United States for increased defense contributions akin to those placed on Europe, Taiwan plans to raise its defense budget to 3.32 percent of GDP in the next fiscal year, exceeding 3 percent for the first time since 2009. The aim is to reach 5 percent by 2030, as reiterated in Lai’s earlier statements.
Reflecting on the situation, Lai noted that in light of China’s mounting military pressure over the last five years, history has shown that yielding to aggression leads to “enslavement.” “There is no room for compromise on national security,” he asserted, underscoring the importance of national sovereignty and the core values of democracy and freedom.
Lai, who first revealed the new budget strategy in an op-ed for the Washington Post, framed the situation as a struggle for Taiwan’s democratic identity against becoming “China’s Taiwan.” He expressed unwavering commitment to peace and stability, stating, “No country will be more determined in safeguarding Taiwan’s future.”
The government plans to enhance defenses against Beijing’s psychological operations aimed at destabilizing national unity, focusing on monitoring Chinese interference during critical national events, such as elections, and raising public awareness about these tactics.
The NT$1.25 trillion special budget is expected to support the acquisition of precision-strike missiles and facilitate joint developments with the United States, according to Minister of National Defense Wellington Koo (顧立雄). The newly introduced T-Dome comprehensive air defense system, integrating both domestic and US-made weaponry, will also be a focus of these funds.This special budget proposal must clear legislative hurdles before implementation, as it requires approval from a legislature currently dominated by the opposition.
Amidst regional tensions, Lai addressed comments from Japanese Prime Minister Sanae Takaichi regarding China’s hypothetical attack on Taiwan potentially provoking a military response from Japan. Lai hoped for a collective regional responsibility for peace and stability and urged China, as a major power, to act responsibly rather than continuing its threatening postures towards neighboring nations.
