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Taiwan Proposes $40 Billion, Eight-Year Defense Package to Build T‑Dome

Parliament’s decision will determine whether the multiyear T‑Dome buildout and U.S. weapons purchases proceed on Taipei’s timetable.

Taiwán planea un gasto adicional de defensa de 40.000 millones de dólares para contrarrestar a China. (Reuters)
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Taiwán buscará aumentar su gasto en Defensa y preparar al ejército ante amenaza de China
El presidente de Taiwán, Lai Ching-te, durante la ceremonia de presentación de los Tanques de Batalla M1A2T Abrams, el viernes 31 de octubre de 2025, en Taiwán. (AP Foto/Chiang Ying-ying)

Overview

  • President Lai Ching-te unveiled a TWD 1.25 trillion (about US$40 billion) special defense plan for 2026–2033 to accelerate arms acquisitions and develop a layered air-defense system known as the T‑Dome.
  • The government projects defense outlays reaching about 3.32% of GDP in 2026 with a goal of 5% by 2030, and officials say the special package sets a maximum spending cap.
  • The American Institute in Taiwan publicly welcomed the proposal and urged rapid fielding of asymmetric capabilities, following a recent U.S. approval of a US$330 million arms sale.
  • Beijing condemned the plan and warned it would crush external interference, as China’s foreign ministry reiterated opposition to U.S.–Taiwan military ties.
  • Regional tensions remain elevated as Japan deploys surface-to-air missiles in the Nansei islands near Taiwan, and at home the Kuomintang-led legislature questions the cost and legality of the package.