Taiwan President Lai Ching-te, facing China's military pressure and U.S. demands to increase defense cost sharing, said he will inject an additional 58 trillion won in defense spending to strengthen deterrence.
After convening a National Security Council emergency meeting on the morning of the 26th, President Lai said in a speech, "The Beijing authorities have set a goal of completing 'Taiwan's unification by force' in 2027, accelerating military preparations for an invasion of Taiwan while continuing drills around Taiwan and gray-zone incursions," adding, "Beyond force, they are intensifying legal, psychological, and public opinion warfare to erase Taiwan's sovereignty in the world."
Lai said, "'Democratic Taiwan' is a sovereign and independent state, and the people and international friends call it the Republic of China or Taiwan, or the Republic of China Taiwan," adding, "The Republic of China and the People's Republic of China (China) do not subordinate to each other, and Taiwan's sovereignty does not allow encroachment or annexation. This is the status quo we seek to uphold."
Lai said the national security institutional sector and related ministries will form a standing project team to carry out efforts such as rallying Taiwan's society and conducting public opinion campaigns among allied countries. He also said the government will strengthen its response system to prevent China from interfering in Taiwan's policies and elections.
He said that by 2027 the Taiwanese military's joint combat units will establish a high state of combat readiness to deter China's threat, and that by 2033 Taiwan will build comprehensive defense capabilities. He also reaffirmed plans to raise next year's defense budget to more than 3% of gross domestic product (GDP) and expand it to around 5% by 2030.
In particular, over the next eight years (2026–2033), Taiwan will create a special defense budget of 1.25 trillion Taiwan dollars to fund the buildout of a "Taiwanese Iron Dome" (T-Dome) capable of layered defense, advanced detection, and effective interception; the adoption of advanced technology and artificial intelligence (AI); and the establishment of a defense operations system capable of precision strikes.
In an op-ed published on the 25th (local time) in The Washington Post (WP), Lai said, "This budget will not only secure a significant amount of new weapons from the United States but also be used intensively to strengthen Taiwan's asymmetric capabilities." He did not, however, specify funding sources.
China issued a brief rebuttal. Mao Ning, Spokesperson for the Ministry of Foreign Affairs, said at a briefing that day, in response to questions about President Lai's defense budget announcement and comments by Secretary-General Green, "China's position opposing official and military exchanges between the United States and Taiwan is consistent," adding, "The Democratic Progressive Party authorities in Taiwan cannot succeed in resisting unification by force and seeking independence."