Taiwanese President Lai Ching-te on Wednesday announced a supplemental $40 billion budget for U.S.-made weapons and further development of the island-wide air defense system “Taiwan Dome,” aimed at countering China’s escalating threats to Taiwan and the broader Indo-Pacific region.
The move comes as U.S. President Donald Trump called on Taiwan to increase its defense spending to as much as 10% of GDP, a level far above what the U.S. or any of its major allies allocate.
“China’s threats to Taiwan and the Indo-Pacific region are escalating,” Lai said. “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-defense,” he added.
Taiwan Defense Minister Wellington Koo said the budget will fund items including missiles, drones, and the new “T-Dome” air defense system. The “T-Dome” is designed to protect the island from Chinese air and missile attacks, although details on how it differs from existing Patriot and Sky Bow systems remain unclear.
The U.S. State Department on Wednesday said it welcomes Taiwan’s budget announcement and “supports Taiwan’s acquisition of critical defense capabilities, commensurate with the threat it faces.”
