Taiwanese President Lai Ching-te. Yonhap News Agency

Faced with military pressure from China and demands for increased defense spending from the United States, Taiwanese President Lai Ching-te has stated his intention to increase defense expenditures, including an additional defense budget of approximately 58 trillion Korean won.

In a speech on the morning of the 26th, after convening a National Security Council emergency meeting, President Lai stated, "The Beijing authorities are targeting the 'unification of Taiwan by force' by 2027, accelerating military preparations for an invasion of Taiwan, and continuing to conduct exercises around Taiwan and incursions into the gray zone." He added, "In addition to military force, they are intensifying legal warfare, psychological warfare, and public opinion warfare to extinguish Taiwan's sovereignty in the world."

President Lai emphasized, "A 'democratic Taiwan' is a sovereign and independent nation, and its people and international friends refer to our country as the Republic of China, Taiwan, or the Republic of China, Taiwan." He further stated, "The Republic of China and the People's Republic of China (China) are not subordinate to each other, and Taiwan's sovereignty does not permit invasion or annexation. This is the status quo we will defend."

He announced that the national security sector and relevant ministries will form a permanent project team to foster social cohesion in Taiwan and conduct public opinion campaigns with allied nations. He also pledged to prevent Chinese interference in Taiwan's government policies or elections.

President Lai further stated that the Taiwanese military's joint combat units will establish a high state of combat readiness before 2027 to deter Chinese threats, and a comprehensive deterrence defense force will be built by 2033.

He reiterated his plan to increase next year's defense budget to over 3% of the Gross Domestic Product (GDP), in accordance with North Atlantic Treaty Organization (NATO) standards, and to reach 5% of GDP by 2030.

Specifically, he revealed that a special defense budget of 1.25 trillion Taiwanese dollars (approximately 39.86 billion US dollars) will be allocated over the next eight years (2026-2033) for the establishment of a "Taiwanese Iron Dome" capable of multi-layered defense, high-altitude detection, and effective interception, as well as the introduction of advanced technologies and artificial intelligence (AI), and the construction of a defense operational system for precision strikes.

President Lai, who has been continuously urged to increase defense expenditure by the incoming "second Trump administration" in the United States, personally expressed his commitment to increasing defense spending through a prominent American media outlet.

Regarding the "40 billion dollar special defense budget," President Lai emphasized, "This groundbreaking package will not only support major new weapons purchases from the United States but also significantly enhance Taiwan's asymmetric capabilities."

Raymond Greene, Chargé d'Affaires of the American Institute in Taiwan (AIT), which serves as the de facto U.S. embassy in Taiwan, issued a statement welcoming Taiwan's "40 billion dollar special defense budget," saying, "The United States supports Taiwan's rapid acquisition of key asymmetric capabilities necessary to enhance its deterrence."

China responded with a relatively brief statement of opposition.

During a press briefing, Chinese Foreign Ministry spokesperson Mao Ning, in response to questions about President Lai's defense budget announcement and Greene's remarks, stated, "China's position of opposing official and military exchanges between the U.S. and Taiwan is consistent." She added, "The Democratic Progressive Party authorities in Taiwan's attempt to refuse unification by force and pursue independence will not succeed."

Meanwhile, in an op-ed published in the WP on the same day, President Lai also pledged to respond to threats and increase domestic and international jobs through advanced investment, expansion of the defense industry base, cooperation with countries of "similar ideology," and strengthening the defense supply chain using Taiwan's manufacturing capabilities.

He expressed gratitude for the international community's continued strong voice for peace in the Taiwan Strait, noting that recent statements from Japan, the United States, Europe, South Korea, Australia, New Zealand, and the Group of Seven (G7) have all contributed to strengthening regional deterrence. He added, "We are grateful to President Trump for making the importance of U.S. leadership clear globally, and the international community is safer thanks to the Trump administration's pursuit of peace through strength."

During his presidential campaign, President Trump had demanded that Taiwan pay "protection fees" to the United States and increase its defense spending to 10% of its GDP.

Amid rising tensions in the Taiwan Strait due to intensified Chinese assertiveness, Taiwan faces the situation of having to accept increased investment in the U.S. by advanced companies like TSMC and increased defense spending, compounded by pressure on tariffs and defense from the incoming "second Trump administration."

In August, the Taiwanese government finalized its central government budget for the following year, including a defense budget of 949.5 billion Taiwanese dollars (approximately 44.2 trillion Korean won). The defense budget for the upcoming year is 22.9% higher than this year and accounts for 3.32% of Taiwan's GDP. This marks the first time since 2009 that Taiwan's defense spending as a percentage of its GDP has exceeded 3%.

Yonhap News Agency