Taiwan Approves $40 Billion Defence Plan Amid China Threat
Taiwan has approved an additional $40 billion defence package to be rolled out between 2026 and 2033, citing rising military pressure from China. President Lai Ching-te said the expanded budget is essential to strengthen Taiwan’s defences as Beijing intensifies aerial and maritime activity around the island.
Focus On Air Defence And Missile Shield
A major share of the new funding will go toward Taiwan’s T-Dome programme, a multi-layered air-defence and missile-interception system designed to counter missiles, drones and aircraft. The plan also includes investments in advanced missiles, drones, AI-supported battlefield systems and closer security cooperation with the United States.
No Compromise On National Security
President Lai stated that Taiwan has “no room for compromise” on sovereignty and national security. He dismissed Beijing’s claims over the island and said the defence boost is necessary to safeguard democracy. The government aims to raise defence spending from 3.3 percent of GDP in 2026 to 5 percent by 2030.
Regional Reactions And Strategic Impact
The United States welcomed Taiwan’s move, calling it an important step toward deterring aggression in the Taiwan Strait. China criticised the decision, warning that such actions escalate regional tensions. Analysts say the enhanced budget reflects Taiwan’s shift toward a stronger deterrence posture amid growing Indo-Pacific instability.
