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Taiwan announces $40 million arms deal as US pressures island to increase defense spending

Taiwan President Lai Ching-Te announced a 40-year budget for arms purchases on Wednesday. The strategies include building an air defense system with high detection and sensing capabilities called Taiwan DOME, as the US pressures the island to increase its defense spending.

According to the leader, this budget will be allocated over eight years, from 2026 to 2033, and comes after Lai has already promised to spend 5% of GDP, as part of his attack plan.

“China’s threats to Taiwan and the Indo-Pacific region are increasing,” Lai said on Wednesday. “Recently, various types of military fraud, maritime gray areas and disinformation campaigns have been taking place in Japan, the Philippines and around the Taiwan Strait, causing distance and distress to all groups in the region.”

Taiwan President Lai Ching-TE delivers a speech during the opening ceremony of the M1A2T abrams main bar Tank in Hsinchu County, Taiwan, Friday, Oct. 31, 2025.

Chiang ying / ap


“Taiwan, as the most important and important part of the first island, must show our determination and has a great responsibility in defending itself,” he said, referring to the part of the islands from the East China Sea in the Philippines.

Last week, Japan said scratched plane After finding a suspected drone near its island of Yonaguni, which is approaching Taiwan.

Currently, Taiwan has set an increase in its defense budget to 3.3% of its GDP by 2026, which is allocated to $31.18 billion). President Donald Trump wants Taiwan to raise its defense spending to 10% of GDP, an amount higher than the US or any of its major suppliers.

The US State Department on Wednesday said it welcomes Taiwan’s budget announcement and “supports Taiwan’s acquisition of critical defense capabilities, in line with the threat it faces.”

It also accepted commitments by the LAI administration to increase defense spending to at least 5% of GDP by 2030, “showing determination to strengthen Taiwan’s defense capabilities.”

Taiwan, a self-governing island, is claimed by China. In recent years, China has sent warplanes, navfy ships and drones to the island on a daily basis as part of its suppression efforts.

Wellington Koo, Taiwan’s defense minister, said Wednesday that $40 billion is the upper limit of the special budget and that it will be used to buy intercontinental ballistic missiles and to work on getting the development of Taiwan and the US equipment and systems.

Lai also said that his government will focus on finding ways to increase the defenses of this “psychological war” as China tries to “weaken our unity.” He said the government will monitor and raise public awareness of China’s interference efforts during major events and elections.

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