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Taiwan Initiates Discussions with U.S. on $40 Billion Defence Strategy

Taiwan Initiates Discussions with U.S. on $40 Billion Defence Strategy

Post by : Saif Rahman

Taiwan has commenced initial talks with the United States regarding the acquisition of new military equipment as part of its proposed $40 billion defence budget spanning from 2026 to 2033. Defence Minister Wellington Koo announced the discussions on Thursday during a press briefing in Taipei. This highlights Taiwan's commitment to bolstering its military capabilities in light of increasing pressure from China.

Earlier this week, President Lai Ching-te unveiled the new defence initiative, stating that it was vital for showcasing Taiwan’s dedication to self-defense. China, asserting claims over Taiwan as its territory, has escalated military activities surrounding the island over the last five years. Taiwan firmly rejects these claims and maintains its stance on preserving its freedom and democratic framework.

Koo emphasized that the United States would play a pivotal role in the upcoming defence expenditures. He mentioned that Taiwan has already engaged in “preliminary coordination” with Washington concerning weapon acquisitions. Additionally, Taiwan has received insights from the U.S. Department of Defense regarding available items, estimated costs, and delivery schedules. According to Koo, this signifies U.S. support for Taiwan’s military needs; however, he noted that specific details can't be disclosed until Congress is formally notified.

While the Pentagon has yet to provide immediate comments on the discussions, the U.S. remains Taiwan’s key unofficial ally and principal arms supplier. Despite lacking formal diplomatic ties, the U.S. consistently expresses its desire for Taiwan to maintain the ability to defend itself.

For the plan to advance, it requires approval from Taiwan’s parliament, which poses a potential hurdle as the opposition Kuomintang (KMT) controls the legislature. The party criticized President Lai for publicizing the initiative through a Washington Post article before informing parliamentary members. The KMT has voiced its support for national defence but raised concerns regarding the fiscal responsibility of borrowing such a significant sum.

In response, Premier Cho Jung-tai urged lawmakers to consider the larger context, citing the looming threats from China, and emphasizing the necessity for self-investment in national security: “If you don’t have a country, how can you have a home?” he stated.

Koo pointed out that the defence budget is anticipated to generate approximately 90,000 jobs, contributing direct economic benefits of around NT$400 billion.

Washington has encouraged Taiwan, similar to its European allies, to enhance its defence expenditures. President Lai has expressed hopes for increasing defence spending to 5% of Taiwan's GDP by 2030. However, since the inauguration of U.S. President Donald Trump in January, only one arms sale—valued at $330 million for fighter jets and parts—has been approved.

Nevertheless, U.S. officials have indicated that more weapon sales are anticipated, potentially surpassing levels experienced during Trump's previous term. The aim is to ensure Taiwan possesses adequate military capabilities to deter any possible Chinese aggression.

In the coming months, Taiwan's Parliament will have the crucial task of approving the expansive defence strategy. Concurrently, the U.S. will need to proceed with any future arms notifications. The resolutions taken in this period could significantly influence Taiwan's security landscape for many years ahead.

Nov. 27, 2025 5:22 p.m. 75

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