Taiwan's president urges opposition to pass $40 billion defense budget

Thursday 01 January 2026 - 07:50

By: Dakir Madiha

Taiwan's president urges opposition to pass $40 billion defense budget

Taiwan's President Lai Ching-te delivered a firm New Year's address, vowing to safeguard the island's sovereignty and bolster military capabilities in response to China's largest-ever drills encircling the self-governing democracy. Speaking from the Presidential Office in Taipei, he emphasized his unwavering stance: resolute defense of national sovereignty, strengthened national defenses, and enhanced societal resilience. The speech came just days after Beijing wrapped up its "Mission Justice 2025" exercises, which featured missile launches toward Taiwan and the mobilization of dozens of warships and fighter jets around the island.

Lai issued a pressing call to opposition parties to approve his proposed $40 billion supplemental defense budget, warning that ongoing delays could undermine Taiwan's credibility amid China's aggressive military ambitions. "Taiwan has no time to waste, nor room for internal strife," he stated. The Kuomintang and Taiwan People's Party, which hold sway in parliament, have stalled the eight-year spending plan five times since December. The funds would finance U.S. arms purchases, development of a multi-layered air defense system akin to Israel's Iron Dome, and upgrades to Taiwan's asymmetric warfare capabilities.

This budgetary standoff unfolds as Taiwan pushes to elevate defense spending beyond 5% of GDP by 2030, up from the current 3.3%. China's two-day drills, ending Wednesday, represent the sixth major operation since 2022 and the most expansive and proximate to Taiwan yet. Beijing framed them as retaliation for what it termed U.S.-Taiwan "collusion," following Washington's approval of an unprecedented $11.1 billion arms sale to the island on December 17.

In his own New Year's remarks, Chinese President Xi Jinping reiterated that Taiwan's reunification remains inevitable, invoking shared blood ties across the Taiwan Strait. International backlash included condemnations from Japan, Australia, the European Union, and the Philippines, with Tokyo voicing alarm over rising tensions and Canberra labeling the maneuvers destabilizing. China dismissed the rebukes as irresponsible.

Lai described 2026 as a pivotal year for Taiwan, urging preparations for the worst while hoping for the best. He expressed openness to dialogue with China on equal and respectful terms, provided Beijing acknowledges Taiwan's democratic governance. "Peace can only be secured through strength," he told reporters afterward, rejecting any notion that it could stem from a mere peace accord or capitulation to an aggressor.