Taiwanese leader William Lai Ching-te has unveiled an unprecedented US$40 billion defense boost over eight years, calling it a historic investment to protect the island’s democracy and deter China.
Writing in The Washington Post, Lai said defense spending will rise to 3.3% of GDP next year and reach 5% by 2030. He argued the buildup will strengthen asymmetric capabilities and raise the cost of any Chinese military action.
🇹🇼 President Lai Ching-te said the military aimed to have a “high level” of joint combat readiness against China by 2027
— The Telegraph (@Telegraph) November 26, 2025
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Washington immediately backed the plan. Beijing condemned it, accusing Lai of seeking independence through militarization.
Lai warned that China aims to be ready to use force by 2027 and accused Beijing of waging nonstop pressure campaigns through drills, drones and sabotage.
Taiwan's president to propose $40 billion in extra defence spending as the democratic island seeks to deter a potential Chinese invasionhttps://t.co/lLw5A1T4Ky pic.twitter.com/HmNP7HkALq
— AFP News Agency (@AFP) November 26, 2025
Taiwan’s modernization push includes the “T-Dome” air and missile defense system, expanded drone fleets and joint development with the U.S.
Taiwan will introduce a supplementary defense budget of 1.25 trillion Taiwanese dollars ($40 billion) as Beijing accelerates military preparations near the island, President Lai Ching-te said at a press briefing Wednesday.
— CNBC International (@CNBCi) November 26, 2025
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Domestic reaction is mixed, with critics warning of economic strain. Lai insisted the investment is essential for peace and security.
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TIPP Staff
