Taiwan President Proposes $40 Billion Multi-Year Defense Package

Overview

• Lai Ching-te outlined the plan in a Washington Post op-ed, saying the funding would strengthen deterrence by investing in U.S. weapons and Taiwan’s asymmetric capabilities.
• The package is slated to roll out over roughly eight years and targets a high level of military readiness by 2027, including faster development of the T-Dome air-defense system.
• The proposal supplements an already submitted defense budget of about $30 billion for next year, aligning with goals to exceed 3% of GDP next year and reach 5% by 2030.
• Approval faces resistance in the Kuomintang-controlled chamber, with newly elected KMT chair Cheng Li-wun arguing that Taiwan does not have enough money for such an increase.
• The announcement comes after Washington approved a $330 million military sale to Taiwan, and the United States has urged Taiwanese parties to find common ground on defense funding.