Taiwan unveils $40B defense spending plan to counter China military threat over next decade

KAOHSIUNG: Last week, Taiwan President William Lai unveiled a monolithic $40 cardinal supplemental defence procurement proposal, casting it arsenic impervious that the independently ruled, antiauthoritarian land is superior astir countering escalating subject unit from the People’s Republic of China (PRC). The PRC has not governed Taiwan for adjacent a azygous time but claims it arsenic its territory.

A State Department spokesperson told Fox News Digital that, "We invited Taiwan’s announcement of a caller $40 cardinal peculiar defence procurement budget. Consistent with the Taiwan Relations Act and much than 45 years of committedness crossed aggregate U.S. Administrations, the United States supports Taiwan’s acquisition of captious defence capabilities, commensurate with the menace it faces." 

The spokesperson besides commended Taipei, "We besides invited the Lai administration’s caller commitments to summation defence spending to astatine slightest 3% of GDP by 2026 and 5% of GDP by 2030, which demonstrates resoluteness to fortify Taiwan’s self-defense capabilities."

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Taiwan's President William Lai  visits soldiers and aerial unit force successful Hualien, Taiwan May 28, 2024.  (Ann Wang/Reuters)

The American Institute successful Taiwan (AIT) – the de facto American embassy – responded precise positively astir instantly aft Lai’s connection was announced. Courtney Donovan Smith, a governmental columnist for the Taipei Times, told Fox News Digital that the beardown enactment from AIT, "Amounts to a nationalist American stamp of approval."

A time aft Lai’s announcement, Taiwan’s Defense Minister, Wellington Koo, told the media that preliminary talks person already been held with the United States astir the kinds of weapons it wants to bargain arsenic portion of this fund that would tally from 2026 to 2033. But Koo said helium could not marque immoderate details of discussions nationalist until Congress receives a ceremonial notification.

Yet immoderate successful Taiwan expressed interest that the connection from the medication was somewhat understated, and didn’t travel from senior-enough officials. 

Those disquieted astir what they comprehend arsenic a muted code from the Trump medication wondered if the timing could beryllium sensitive, coming soon aft President Trump and Chinese person Xi Jinping agreed to a commercialized deal, and conscionable days aft Xi phoned Trump to reiterate Beijing’s claims implicit Taiwan, claims the U.S. "acknowledges" but does not accept.

Even so, Taipei-based governmental hazard expert and Tamkang University adjunct prof Ross Feingold told Fox News Digital that U.S. enactment fundamentally has not shifted and that erstwhile it comes to U.S. weapons income to Taiwan, "If Taiwan is simply a consenting buyer, the Trump medication is apt to beryllium a consenting seller."

A surface drawback captured from a video shows the Chinese People's Liberation Army's Eastern Theater Command launching large-scale associated subject exercises astir Taiwan with naval vessels and subject craft successful China connected May 24, 2024. (Feng Hao / PLA / China Military/Anadolu via Getty Images)

Also causing distress to the fragile egos of China’s communist leaders is Japan’s caller Prime Minister Sanae Takaichi, a blimpish who became Japan’s archetypal pistillate premier curate successful October. She appeared to interruption long-standing Japanese strategical ambiguity implicit Taiwan when, asked connected Nov. 7 successful parliament whether a Chinese onslaught connected Taiwan would suffice arsenic "a concern threatening Japan’s survival."

Takaichi didn’t deflect with a "I don’t remark connected hypotheticals." Instead, she said, "If determination are battleships and the usage of force, nary substance however you deliberation astir it, it could represent a survival-threatening situation."

Under Japan’s 2015 information law, that designation could let Japanese subject enactment successful defence of an ally.

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A Taiwanese worker watches done a almighty binoculars the Taiwan Strait on the constrictive oversea lane that abstracted China from Taiwan. Here is Taiwan closest constituent to China and contempt the relaxation of relations betwixt the 2 enemies, the country is inactive dense guarded. (Alberto Buzzola/LightRocket via Getty Images)

China predictably lashed out, instantly calling her remarks "egregious." A Chinese diplomat successful Osaka escalated further, reposting sum connected X with a threat-like warning: "The soiled caput that sticks itself successful indispensable beryllium chopped off."

Kerry K. Gershaneck, a visiting student astatine National Chengchi University and a erstwhile U.S. Marine counterintelligence officer, told Fox News Digital that the U.S. needed to intelligibly denounce China for threats against Japan and the Japanese premier minister. Gershaneck warned that Asian allies retrieve past U.S. abandonment" nether what helium called the "do not provoke China!" argumentation of the Obama administration. "Unless high-level Washington officials awesome stronger support, helium said, "the Trump 47 medication risks going down successful past arsenic Barack Hussein Obama’s 3rd term."

Feingold noted that portion Takaichi’s stance was enthusiastically received successful Taiwan, the excitement "was unsustainable and not based connected a ceremonial argumentation determination by Japan to support Taiwan."

Following reports that President Trump phoned the Japanese premier curate and requested that she dial down speech astir Taiwan, Japan’s Chief Cabinet Secretary Kihara Minoru issued a beardown denial, saying Trump did not counsel Takaichi to "temper the code of her comments astir Taiwan."

President Donald Trump, with Japanese Prime Minister Sanae Takaichi, speaks to members of the subject aboard the USS George Washington, an craft bearer docked astatine an American naval base, successful Yokosuka, Tuesday, Oct. 28, 2025. (Mark Schiefelbein/AP Photo)

While the geopolitical shifts grabbed headlines, Lai’s existent situation is domestic. Taiwan has a single-chamber legislature, and Lai’s Democratic Progressive Party does not person a majority.

Cheng Li-wun, the caller seat of the main absorption Kuomintang (KMT), campaigned against boosting defence spending to 5% of GDP and has repeatedly argued Taiwan is "not an ATM" for "unreasonable" subject budgets. The KMT supports renewed engagement with Beijing and acceptance of the "1992 Consensus," a projected model that allows some sides to assertion determination is "one China" portion interpreting the meaning differently. Lai rejects that presumption entirely, calling it a way toward subordination to China.

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Soldiers airs for radical photos with a Taiwan emblem aft a preparedness enhancement drill simulating the defence against Beijing's subject intrusions, up of the Lunar New Year successful Kaohsiung City, Taiwan connected Jan. 11, 2023.  (Daniel Ceng/AP Photo)

Bryce Barros, subordinate chap astatine GLOBSEC and a erstwhile U.S. Senate nationalist information advisor, told Fox News Digital that determination are superior hurdles. "Opposition leaders person cited cuts to different indispensable services similar healthcare, deficiency of details connected however the fund volition beryllium paid for and concerns implicit much hostilities with China," helium said. But Barros said the caput of the de facto American embassy has called for bipartisan enactment for the bill, and helium noted Lai needs lone six absorption defections for the ballot to pass.

Analysts besides accent the connection is not solely for U.S. weapons. Lai wants large concern successful home defence manufacturing, including a "dome" anti-missile system, which could assistance blunt accusations of excessive spending to curry favour with Washington. But the program inactive faces a volatile parliament and definite retaliation from China.