Taiwan says will put US$40B toward air defence system, US weapons

Taiwan’s President Lai Ching-te on Wednesday announced a special US$40 billion budget for arms purchases, including to build a Taiwan Dome, an air defence system with high-level detection and interception capabilities, as the United States pressures the island to increase its defence spending.

The budget will be allocated over eight years, from 2026 to 2033, and comes after Lai already pledged to raise defence spending to five per cent of the island’s GDP, as part of his strategy amid China’s threats of invasion.

“China’s threats to Taiwan and the Indo-Pacific region are escalating,” Lai said Wednesday. “Recently, various types of military intrusions, maritime gray zones and disinformation campaigns have been occurring in Japan, the Philippines and around the Taiwan Strait, causing deep unease and distress to all parties in the region.”

“Taiwan, as the most important and most critical part of the first island chain, must demonstrate our determination and take on a greater responsibility in self-defence,” he said, referring to the string of islands stretching from Japan’s East China Sea islands through the Philippines in the Pacific Ocean.

Story continues below advertisement 3:01 Trump holds calls with leaders of Japan, China amid dispute over Taiwan

Currently, Taiwan has set an increase in its defence budget to 3.3 per cent of its GDP for 2026, allocating $949.5 billion Taiwan dollars ($31.18 billion). U.S. President Donald Trump has demanded Taiwan raise its defence spending to as much as 10 per cent of GDP, a proportion well above what the U.S. or any of its major allies spend.

Get daily National news

Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Taiwan, a self-ruled island, is claimed by China. In recent years, China has deployed warplanes, navy ships and drones toward the island on a daily basis in military exercises as part of its efforts to exert pressure.

Lai had previewed the announcement in an op-ed for The Washington Post on Wednesday, saying the special budget would be used to purchase arms from the U.S. He told reporters Wednesday, however, that the budget has nothing to do with the government’s tariff negotiations with the U.S.

Story continues below advertisement 2:18 Japan plans to deploy missiles on island near Taiwan as dispute with China escalates Trending Now

• Black Friday Canada: Your ultimate guide to must-shop deals
• Organized crime motorcycle gang busted while trying to set up in Edmonton: Police

Wellington Koo, Taiwan’s defence minister, said Wednesday the $40 billion is an upper limit for the special budget and that it will be used to buy precision-strike missiles and toward the joint development and procurement between Taiwan and the U.S. of equipment and systems.

Lai also said his government would focus on finding ways to increase its defence against Beijing’s “psychological warfare” as China attempts to “weaken our unity.” He said the government will monitor and increase public awareness of China’s interference attempts during major events and elections.

Lai also commented on an escalating feud between China and Japan, which started after Japan’s conservative leader said the country might get involved militarily if China makes a move against Taiwan. The remarks incensed Beijing. Lai said Japanese Prime Minister Sanae Takaichi’s comments appeared to be focused largely on the stability of the region.

Story continues below advertisement

“We hope China can understand that each country in the Indo-Pacific region has a responsibility to its peace and stability, and that we especially hope China, as a major power in the region, would also demonstrate the responsibilities of a major power,” Lai said. “Instead, it has continued to raise threats and attacks toward neighboring countries. This is not the way a responsible major power acts.”

More on World More videos

• Ukraine talks ‘a step forward’ but road to peace is long, Europe warns
• Brazil’s Bolsonaro says ‘hallucinations’ led to arrest, judge says
• Carney says he’ll speak with Trump ‘when it’s appropriate’
• 50 schoolchildren escape Nigerian abduction, but more remain captive

• Vancouver to introduce temporary FIFA bylaws
• Ethiopia’s Hayli Gubbi erupts for 1st time in recorded history
• French President Macron says Trump’s Ukraine peace plan needs to be ‘improved’
• White House circulates plan to extend Obamacare subsidies