KABUL: In response to escalating tensions between China and Taiwan, President Lai Ching-te of Taiwan has announced a special defense budget of $40 billion for military equipment purchases.
According to a report by France Presse today, this budget, allocated over eight years (from 2026 to 2033), includes funding for the “Taiwan Shield,” an advanced air defense system capable of high detection and tracking.
President Lai emphasized that the threats from China against Taiwan and the Indo-Pacific region are increasing, highlighting the need for Taipei to bolster its defensive capabilities.
Taiwan’s Defense Minister Wellington Koo noted that the $40 billion budget is specifically allocated for the purchase of precision-guided missiles and the joint development and procurement of equipment and systems to be utilized by both Taipei and Washington.
In 2026, Taiwan plans to allocate 3.3% of its GDP (approximately 949.5 billion Taiwan dollars, equivalent to $31.18 billion) for its defense budget.
This comes just days after the Chinese President reiterated, in discussions with his American counterpart, that Taiwan is to be recognized as part of a united China, framing it as a component of the international order established after World War II.