Taiwan Proposes $40 Billion Defense Plan to Address China Military Pressure
KAOHSIUNG, Taiwan — December 3, 2025 — Taiwan President William Lai has unveiled a $40 billion supplemental defense procurement proposal aimed at countering growing military pressure from the People’s Republic of China (PRC). The plan, which covers the period from 2026 to 2033, reflects Taiwan’s efforts to strengthen its self-defense capabilities amid ongoing tensions with Beijing.
The PRC claims Taiwan as its territory despite never having governed the island, which operates as an independently ruled democracy. In response to the announcement, a U.S. State Department spokesperson told Fox News Digital that the United States welcomes Taiwan’s new defense budget. The spokesperson emphasized that U.S. support is consistent with the Taiwan Relations Act and longstanding commitments across multiple administrations.
The spokesperson also highlighted Taiwan’s recent commitments to increase defense spending to at least 3% of its gross domestic product (GDP) by 2026 and 5% by 2030, describing these moves as a demonstration of resolve to enhance Taiwan’s defense capabilities.
The American Institute in Taiwan (AIT), the de facto U.S. embassy on the island, responded positively to the proposal. Courtney Donovan Smith, a political columnist for the Taipei Times, characterized the AIT’s reaction as a public stamp of approval from the United States.
Taiwan’s Defense Minister Wellington Koo confirmed that preliminary discussions with the United States have already taken place regarding potential weapons purchases under the new budget. However, Koo noted that details of these talks remain confidential until formal notifications are submitted to the U.S. Congress.
Despite the overall positive reception, some voices in Taiwan expressed concern that the U.S. response was somewhat muted and lacked statements from senior officials. These concerns were heightened by the timing of the announcement, which followed a recent trade deal between U.S. President Donald Trump and Chinese leader Xi Jinping, as well as a phone call in which Xi reiterated Beijing’s claims over Taiwan.
Nevertheless, political risk analyst Ross Feingold, an assistant professor at Tamkang University in Taipei, told Fox News Digital that U.S. support for Taiwan’s defense has not fundamentally changed. He added that “if Taiwan is a willing buyer, the Trump administration is likely to be a willing seller” when it comes to arms sales.
The $40 billion defense plan underscores Taiwan’s commitment to bolstering its military capabilities in the face of increasing pressure from China, while the United States continues to navigate a complex diplomatic balance in the region.
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