Taiwan Announces $40 Billion Defense boost Amid rising China Tensions
TAIPEI – Taiwan’s President Lai Ching-te announced plans to increase the island’s defense spending by $40 billion over the next five years, responding to what officials describe as China’s “intensifying” military threats and transnational repression. the increase will raise Taiwan’s defense budget to 3.3% of its GDP in 2026, with a commitment to reach 5% by 2030.
Lai stated the additional funds would be used to bolster asymmetric warfare capabilities, enhance cyber defenses, and create new measures to protect Taiwanese citizens abroad from Chinese transnational repression.
The move was welcomed by the United States, with Raymond Greene, the representative of the American Institute in Taiwan, calling it “a major step towards maintaining peace and stability across the Taiwan Strait by strengthening deterrence.”
china’s Taiwan Affairs Office spokesperson, Peng Qingen, condemned the spending increase, stating Taiwan was “squandering money on currying favour with external powers” and warning it would “only plunge Taiwan into disaster.”
The proclamation follows a recent phone call between Donald Trump and Xi Jinping, during which Xi Jinping reaffirmed China’s claim over Taiwan and its intention for eventual annexation, stating, “Taiwan’s return to China is an integral part of the post-war international order.”
The situation is further complicated by an ongoing diplomatic dispute between China and Japan. Japanese Prime Minister Sanae Takaichi has indicated Japan would likely intervene militarily if China were to attack Taiwan, prompting economic retaliation from China. Japan is also proceeding with plans to install a missile defense system on Yonaguni Island, its closest territory to Taiwan, located just 110km off Taiwan’s east coast.
Chinese officials accuse Japan of deliberately escalating regional tensions. Peng stated on Wednesday that Japan’s deployment of offensive weapons near Taiwan is “extremely dangerous” and a provocation, adding, “We will crush all foreign interference.”
