On January 20th, the legislators from both the blue and white camps in the Legislative Yuan of the Republic of China voted together to pass a proposal put forth by the Kuomintang caucus. This proposal involves freezing 50% of the NT$2 billion (approximately $64 million USD) budget allocated for the construction of the next phase of indigenous submarine building, known as the “Submarine Project Phase III.” The funds will only be released after the completion of sea trials for the Hai Kun submarine and upon receiving approval from the Legislative Yuan following a special report.
The Republic of China Navy Command headquarters issued a press release on the 19th regarding the freezing of NT$1.8 billion in the “Submarine Project Phase III” budget. In response to threats from potential adversaries, the military must accelerate the development of underwater capabilities without delay. Submarines are crucial asymmetric assets for maintaining security in the Taiwan Strait and safeguarding maritime trade routes, representing a significant policy in demonstrating the nation’s commitment to strengthening its self-defense capabilities.
The Navy has been diligently working on the construction of the prototype submarine, carrying out various tests with great urgency. Any substantial freeze in the budget could potentially delay the subsequent submarine construction timeline, exacerbate the imbalance of military capabilities between adversaries, and send a wrong message to international partners, domestic and overseas collaborators, as well as technical personnel, making it difficult to rebuild trust once it is compromised.
The Navy Command explained that the budget allocated for the year 114 (2025) is NT$2 billion, primarily intended for executing equipment contracts, signing agreements with shipyards, and engaging foreign technical consultants. Freezing the budget would lead to payment deferrals, causing delays in the planned milestones for the year and impeding the formation of military capabilities. This would adversely impact securing export permits from foreign governments, reduce the willingness of manufacturers to cooperate, and result in the loss of skilled shipbuilding professionals, ultimately affecting the progress of the subsequent submarine construction.
The Navy Command urges full allocation of the NT$2 billion budget for the subsequent submarine construction in the year 114, to be disbursed upon successful completion of sea trials for the prototype submarine. This serves to showcase the public’s support for domestic submarine construction and would facilitate continued assistance from international allies in enhancing military capabilities, establishing a credible deterrent force to ensure peace and stability in the Taiwan Strait.
On the 20th, the Legislative Yuan continued deliberations on the central government’s budget for the year 114. With regard to the budget items under the Ministry of National Defense, specifically under the “Navy Command,” for the “Submarine Project Phase III” allocating NT$2 billion, the Kuomintang caucus initially proposed to freeze NT$1.8 billion. After discussions and explanations with the People First Party caucus and other relevant committees, the proposal from the Kuomintang caucus was ultimately passed with the support of legislators from both the blue and white camps.
The latest proposal from the Kuomintang caucus aims to freeze half of the NT$2 billion budget intended for the “Submarine Project Phase III” under the Navy Command to enhance the Legislative Yuan’s oversight. The funds will only be released after the Hai Kun submarine successfully completes sea trials and a special report is presented to and approved by the Legislative Yuan.