In a speech to military officers on Taiwan’s Armed Forces Day, President Lai Ching‑te outlined a historic defence budget that will exceed T$1 trillion (about $31 billion) for the first time. The president framed the spending as a clear signal to the international community of Taiwan’s determination to strengthen its self‑defence capabilities.
“Only by continuously enhancing defence capabilities and deterrent power can national security and regional peace be better ensured,” Lai said, emphasizing that a stronger military is essential for protecting Taiwan’s democratic way of life.
Key components of the proposed budget
The plan calls for continued investment in defence self‑reliance, the development of a domestic military‑industrial sector, and the expansion of advanced technologies such as artificial intelligence and unmanned vehicles. These initiatives are intended to improve Taiwan’s overall ability to respond to future challenges.
China’s reaction
China’s Taiwan Affairs Office responded sharply, accusing Lai’s administration of “recklessly inciting cross‑strait confrontation” and squandering the people’s hard‑earned money. A spokesperson warned that Taiwan’s attempts to “resist reunification through force” would bring “profound disaster” to the island’s residents.
Despite the criticism, Lai reiterated that only the people of Taiwan can decide their own future, underscoring the island’s commitment to democratic self‑determination.
Implications for regional stability
The record‑high defence budget comes amid heightened military and political pressure from Beijing, which continues to view Taiwan as part of its territory. By allocating significant resources to modernising its forces, Taiwan aims to deter aggression and reassure allies of its resolve to maintain peace in the Indo‑Pacific region.
Analysts note that the budget reflects a broader trend of increased defence spending among democracies facing authoritarian challenges, and it may influence future security cooperation with partners such as the United States and Japan.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.