Taiwan announces special budget of $40 billion for arms purchases to bolster defense
Taiwan plans to allocate $40 billion over eight years to modernize its military with U.S. arms and asymmetric warfare tools to deter Beijing, aiming for 5% GDP defense spending by 2030.
- On Nov. 26, President Lai Ching-te announced a US$40 billion supplementary defence budget after proposing it in a Washington Post op-ed on Nov 25.
- Against a backdrop of daily PLA activity, China has deployed warplanes, navy ships and drones toward Taiwan, while recent military intrusions and gray-zone tactics have caused deep unease in the Indo-Pacific region, Lai said.
- Funding asymmetric systems like mobile missile units will include the Taiwan Dome air-defense system and precision-strike missiles via joint development with the United States.
- To deliver on the pledge, Taipei expects Taiwan's defence spending to rise to 3.3% of GDP by next year and President Lai Ching‑te pledged it will reach 5% by 2030; the United States is legally bound to provide Taiwan with defensive means.
- With backlogs exceeding US $19 billion, defense experts say U.S. production constraints may delay arms deliveries to Taiwan, despite a planned $40 billion budget from 2026 to 2033.
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171 Articles
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