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Taiwan Proposes Up to $40 Billion Defense Plan to Build ‘Taiwan Dome’

Taipei says stepped-up PLA activity drives the push to reach high readiness by 2027.

Overview

  • President William Lai said the special budget would fund advanced air-defense and missile interception under a multi-year program.
  • Defense Minister Wellington Koo described the $40 billion as a ceiling for 2026–2033, prioritizing precision missiles and joint U.S.–Taiwan procurement.
  • Lai warned that China is accelerating preparations to seize the island by force and set a target for elevated combat readiness by 2027.
  • Taiwan’s military reported 20 Chinese aircraft and five naval vessels in the past 24 hours, with 319 aircraft and 156 ships tracked since early November.
  • Japan’s prime minister, Sanae Takaichi, said a Chinese invasion could be an existential threat for Tokyo and may prompt a military response, drawing retaliatory steps from Beijing.