President Tsai Ing-wen of the Republic of China (Taiwan) has announced a groundbreaking $40 billion defense special budget to enhance Taiwan’s defense capabilities against threats from the Chinese Communist Party (CCP) and expedite the procurement of new weapons from the United States. The government aims to increase defense spending to 5% of GDP by 2030, marking the longest and largest military investment in modern Taiwanese history.
President Tsai wrote in The Washington Post on Tuesday, emphasizing that the special budget will be used to purchase new weapons from the U.S., significantly enhance Taiwan’s asymmetric warfare capabilities, and increase the cost and uncertainty for Beijing in case of military aggression.
He reiterated Taiwan’s unwavering commitment to peace and stability, asserting that Taiwan is more determined than any other country to safeguard its future.
President Tsai’s announcement of the specific $40 billion amount is the first of its kind, as the government’s latest budget proposal indicates that Taiwan’s defense spending for the fiscal year 2026 will reach NT$ 949.5 billion (approximately $30.25 billion), surpassing the 3% threshold of GDP for the first time since 2009.
Over the past five years, CCP’s military and political pressure on Taiwan has escalated rapidly, with continued provocations in the vicinity of the Taiwan Strait and attempts at military exercises beyond the First Island Chain. Washington has repeatedly urged Taiwan to increase its defense investment in response to these provocations. It remains to be seen whether the Trump administration will accelerate arms sales to Taiwan following the defense investment announcement.
President Tsai emphasized in his article that CCP’s unprecedented military expansion, combined with escalating provocative actions in the Taiwan Strait, East China Sea, South China Sea, and Indo-Pacific region, highlight the fragility of peace and stability.
He outlined Taiwan’s accelerated efforts in implementing the “T-Dome” integrated multi-layered air defense system to intercept CCP missiles, rockets, drones, and fighter threats, utilizing unmanned platforms to create an impenetrable defense network.
President Tsai also mentioned Taiwan’s cooperation with like-minded countries to strengthen defense supply chains, deploy advanced systems, address emerging threats, and expand defense industry investments to boost domestic and international employment. At home, the government has established the “National Defense Resilience Committee” to enhance overall preparedness in facing both man-made and natural disasters.
Regarding cross-strait relations, President Tsai expressed willingness to seek dialogue while emphasizing that freedom and democracy cannot be compromised. He stated that a strong and actively engaged United States remains the cornerstone of global stability.
“In upholding the principles of democracy and freedom without compromise, I will continue to seek dialogue to resolve differences across the strait,” President Tsai wrote. “We will ensure that Taiwan’s security and sovereignty are safeguarded through prudent and decisive actions.”
“Both President Trump and President Reagan deeply understood the importance of ‘peace through strength.’ Taiwan, at the forefront of democracy, tirelessly upholds this principle,” he added.
“The risk cost of conflict must always outweigh the pursuit cost of peace,” President Tsai emphasized. “Despite the immense responsibility, Taiwan is resolute. We firmly believe that by cooperating with the United States and like-minded countries, peace will prevail.”
The President also expressed gratitude to the international community, especially recent support for peace in the Taiwan Strait from Japan, the United States, Europe, South Korea, New Zealand, Australia, and the G7, which has enhanced regional deterrence.