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MAC defends NT$1.25tn defense spending plan

Taiwan aims to boost defense spending to 5% of GDP by 2030 with $40 billion budget focused on air-defense and AI to counter China’s military buildup, officials said.

  • On Wednesday, the Mainland Affairs Council defended President William Lai's plan to raise defense spending to NT$1.25 trillion over eight years, saying Taiwan must prepare for a worst-case scenario in the Taiwan Strait.
  • The MAC noted that Beijing's military buildup accelerated, with China’s four major shipyards building 13 ships over four years, aiming for force by 2027.
  • The plan allocates funding to upgrade air‑defense systems and develop AI‑based operational systems, and William Lai reaffirmed defense spending as share of GDP rising from over 2 percent to 5 percent by 2030.
  • Domestic and Beijing critics argued former president Ma Ying‑jeou said Lai's remarks push Taiwan toward war and China's Taiwan Affairs Office said the DPP should improve lives, not buy weapons.
  • Lai said Taiwan will enhance its military capabilities by 2027 to deter Chinese threats and build comprehensive deterrence by 2033, amid Japan Prime Minister Takaichi Sanae's warning earlier this month.
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Taiwanese President Lai Ching-te said on Wednesday (November 26) that Taiwan will add NT$1.25 trillion (about US$40 billion) to its defense budget to strengthen Taiwan’s asymmetric warfare capabilities and demonstrate Taiwan’s determination to defend itself, in the context of China’s continued increase in military and political pressure on Taiwan.

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Bloomberg broke the news in United States on Wednesday, November 26, 2025.
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