Taiwan has announced a new $40 billion defence package aimed at boosting deterrence against China, with President Lai Ching-te saying the island cannot compromise on national security. The plan, running from 2026 to 2033, includes funding for missiles, drones and the new T-Dome air-defence system.
The move comes as Beijing intensifies military and political pressure on the self-ruled island, and as Washington urges Taipei to increase defence spending. The 1.25 trillion Taiwan-dollar package will require approval from Taiwan's opposition-led parliament.
United States officials say the additional spending strengthens stability across the Taiwan Strait, while Taiwan's main opposition party warned the government to "step back from the brink" amid rising regional tensions. It remains to be seen how quickly the budget will advance through parliament.