Berliner Boersenzeitung - Taiwan's president to propose $40 bn in extra defence spending

Taiwan has ramped up defence spending in the past decade as Chinese military pressure intensified, but US President Donald Trump's administration has pushed the island to do more to protect itself.

The extra spending would go towards "significant new arms acquisitions from the United States, but also vastly enhance Taiwan's asymmetrical capabilities," Lai said in an opinion piece published in the Washington Post on Tuesday.

"We aim to bolster deterrence by inserting greater costs and uncertainties into Beijing's decision-making on the use of force," Lai said.

Communist China has never ruled Taiwan, but Beijing claims the island is part of its territory and has threatened to use force to annex it.

The announcement came as Tokyo and Beijing were locked in a weeks-long diplomatic spat that followed remarks by Japanese Prime Minister Sanae Takaichi suggesting that Japan could intervene militarily in any attack on Taiwan.

It also follows US approval earlier this month for $330 million-worth of parts and components in its first military sale to Taiwan since Trump's return to the White House.

Lai, who leads the Democratic Progressive Party (DPP), previously laid out plans to boost annual defence spending to more than three percent of GDP next year and five percent by 2030, following US pressure to spend more on protecting itself against a potential Chinese attack.

The government has proposed NT$949.5 billion ($30 billion), or 3.32 percent of GDP, for defence spending next year.

The additional spending plan announced in the Washington Post would be spread out over several years and exceeds the $32 billion previously revealed to AFP by a senior DPP lawmaker.

In the opinion piece, Lai said he would accelerate the development of the so-called "T-Dome" -- a multi-layered air defence system -- which will "bring us closer to the vision of an unassailable Taiwan, safeguarded by innovation and technology".

"My message here is clear: Taiwan's dedication to peace and stability is unwavering," Lai said.

"No country will be more determined in safeguarding Taiwan's future than our own."

But the government may struggle to get the proposed spending approved by parliament, where the main opposition Kuomintang party, which advocates closer ties with China, controls the purse strings with the help of the Taiwan People's Party.

Recently elected Kuomintang chairperson Cheng Li-wun has previously opposed Lai's defence spending plans, saying Taiwan "doesn't have that much money".

(H.Schneide--BBZ)