Overview
- Taking office in Taipei, Cheng warned the Taiwan Strait faces grave military danger and vowed to open a new era of cross-Strait peace.
- She said Taiwan cannot afford pushing defense outlays beyond roughly three percent of GDP, calling it "not an ATM" and rejecting a blank cheque for arms.
- Lai Ching-te has proposed NT$949.5 billion for 2026 defense spending at about 3.32 percent of GDP plus up to NT$1 trillion in special funding, which requires legislative approval.
- The KMT and its ally, the Taiwan People's Party, hold a parliamentary majority and previously cut the 2025 general budget and froze some defense items.
- Beijing signaled approval as Xi Jinping sent congratulations after her election, while new KMT deputy Hsiao Hsu-tsen met China's Taiwan Affairs Office chief Song Tao this week.