By: The Trek News Desk
Taiwan has rolled out an ambitious $40 billion defence package to be implemented over the next eight years, a move President William Lai Ching-te says will push the island closer to his vision of a “technologically fortified, unassailable Taiwan.”
The initiative marks the latest step in Taipei’s steadily rising security investments, accelerated in recent years under pressure from Washington, especially during U.S. President Donald Trump’s administration, to expand military readiness in the face of Beijing’s growing assertiveness.
Target: Full Joint Combat Readiness by 2027
President Lai highlighted that the Taiwanese military is aiming for “high-level joint combat readiness” against China by 2027, a year U.S. officials have repeatedly cited as a potential window for a Chinese action against Taiwan.
“Our long-term objective is to build a defence system capable of permanently safeguarding Taiwan’s democracy,” Lai said.
U.S. Support, Domestic Political Pushback
Raymond Greene, the de facto U.S. ambassador in Taipei, welcomed the announcement and urged Taiwan’s political parties to find common ground on strengthening national defence.
Lai noted that a portion of the new funding will be directed toward acquiring additional U.S. weapons systems and enhancing Taiwan’s asymmetric warfare capabilities.
Earlier this month, Washington approved a $330 million sale of parts and equipment to Taiwan, its first military sale since Trump returned to the White House.
Meanwhile, China’s Taiwan Affairs Office accused Taipei of allowing “external forces” to influence its decisions.
Defence Spending Rises as Parliament Resistance Looms
Lai previously committed to raising annual defence spending to over 3% of GDP by next year and to 5% by 2030.
By contrast, Trump has urged Taiwan to allocate up to 10% of its GDP to defence, far beyond the levels of the U.S. and its key allies.
The government’s proposed defence budget for next year stands at NT$949.5 billion (around $30 billion), roughly 3.32% of GDP.
However, approval in parliament remains uncertain. The opposition Kuomintang (KMT), which favours closer ties with Beijing, and the Taiwan People’s Party control key budget committees.
Newly elected KMT chair Cheng Li-wun has criticised Lai’s defence plans, arguing that “Taiwan simply cannot afford such massive spending.”
Focus on T-Dome Air Defence Shield
A major component of the new budget is the accelerated development of the T-Dome, a multi-layered air-defence architecture designed to strengthen Taiwan’s protective shield against evolving aerial threats.
According to Lai, the system will play a central role in Taiwan’s long-term security strategy.
Source: News Agencies
