President Lai Ching-te announced on Wednesday that Taiwan will introduce a supplementary defence budget of $40 billion to strengthen its ability to defend itself against increasing military pressure from China. The budget, spanning 2026–2033, will fund missiles, drones, and Taiwan’s new T-Dome air defence system. For 2026 alone, spending is projected at T$949.5 billion ($30.3 billion), representing 3.32% of GDP, surpassing the 3% threshold for the first time since 2009.
Lai emphasized that Taiwan will not compromise on national security, framing the spending as a defense of democratic values rather than a mere territorial dispute. The U.S., which legally supports Taiwan’s self-defense despite no formal diplomatic ties, welcomed the move, citing the strengthening of deterrence and regional stability.
Opposition lawmakers, including Kuomintang chairwoman Cheng Li-wun, cautioned against escalating tensions, urging peace and restraint. China criticized the plan, accusing Taiwan of wasting resources on weapons and allowing external powers to influence its decisions. Taiwan continues to pursue an asymmetric defence strategy to maximize its military effectiveness against a much larger Chinese force.
