Taiwan’s Fight: Defense Plan 🛡️💥 Will It Work?

World News

On December 1, 2025, as China continues to escalate its military posturing towards Taiwan, Taipei is preparing to significantly increase its own combat readiness. President Lai Ching-te recently unveiled a plan to allocate an additional $40 billion (approximately €34.4 billion) in special defense spending over the next eight years, aimed at developing a sophisticated defense system to counter this pressure. The initiative seeks to raise Taiwan’s annual military spending to approximately 3.3% of gross domestic product (GDP) by 2026, with a long-term goal of reaching 5% of GDP by 2030.

Lai highlighted the urgency of the situation, referencing Beijing’s stated ambition of achieving “complete unification with Taiwan by force by 2027.” Following the speech, Beijing issued a warning that Taiwan’s new defense initiative was “doomed to fail.” The Presidential Office subsequently clarified that Beijing’s comments related to “preparations” rather than a firm timeline. [FILE: July 9, 2025] Image: Ann Wang/Reuters [FILE: November 26, 2025] Image: I-hwa Cheng/AFP

The United States has publicly welcomed the proposal, with Washington serving as Taiwan’s primary security backer and arms supplier despite lacking formal diplomatic relations with Taipei. Raymond Greene, the de facto US ambassador in Taipei, stated that Washington supports Taiwan’s “rapid acquisition of critical asymmetric capabilities.” In response, Beijing condemned Taiwan’s ruling party for “resisting reunification and seeking independence using armed forces,” warning that this course was “doomed to fail.” China is closely monitoring Taiwan’s defense moves as Beijing ramps up military activities around the island [FILE: October 14, 2025].

Image: CHINA’S PEOPLE’S LIBERATION ARMY/AFP

Taiwan’s budget plan — a message potentially aimed at Washington — has drawn attention from experts. Ding Shuh-Fan, an honorary professor at National Chengchi University specializing in East Asian international relations, suggested that the plan could be a response to US President Donald Trump’s “overall approach [and] demands regarding Taiwan.” Taiwan has faced increasing pressure from Washington to bolster its self-defense capabilities since Trump’s second term. Lai emphasized that the $40 billion defense boost represents a long-planned effort to deter Chinese aggression and is not connected to Taiwan-US trade talks or a recent phone call between US President Donald Trump and Chinese leader Xi Jinping. However, experts note the timing of the move is politically significant. Taiwan is currently negotiating with the US to lower a 20% tariff on many exports and is discussing a potential deal that could…

According to a Reuters report, Taiwan has committed to increased investment in US semiconductor capacity and plans to dispatch personnel to train American workers. This move preceded Taiwanese President Lai’s announcement. Ahead of his remarks, Chinese President Xi Jinping held a phone call with former President Donald Trump, during which Xi described Taiwan’s return to China as “an integral part of the post-war international order.” Trump later characterized the call as “very good” but declined to address Taiwan or repeat Beijing’s assertions. Despite growing concerns in Taiwan regarding the possibility of the Trump administration using the island as leverage in negotiations with Beijing, analysts maintain that Taipei retains a strategic advantage due to its location and leading semiconductor industry. “If President Trump were asked to ‘trade’ Taiwan to China, the question would be what China could offer in return,” Ding stated. “The bigger concern would be how to ensure US high-tech industries, including AI and semiconductors, wouldn’t be harmed by such a deal.” Taiwan is also focused on developing military capabilities, including the implementation of its new air defense system, T-Dome. The concept for T-Dome, a multilayered air defense network, was first introduced during a presidential speech at the island’s National Day ceremony in October. The system integrates advanced sensors.

“The key driver behind this shift is the escalating missile threat emanating from China,” explained Su Tzu-yun, director of Defense Strategy and Resources at Taiwan’s National Defense and Security Research Institute. Traditional ground-launched ballistic missiles currently provide Taiwan with approximately 10 minutes of warning time, Su noted, but China’s newly deployed sea-based missiles, launched from warships, could reach the island in as little as three minutes. China, possessing the world’s largest navy in terms of ship numbers, has been aggressively expanding its fleet, prioritizing modern multi-role vessels, including destroyers, cruisers, carriers, and amphibious assault ships. “With these new sea-launched threats, Taiwan’s air-defense system must be more complete and react much faster,” Su added. He argued that strengthening T-Dome would not only enhance Taiwan’s interception capabilities but also deter potential military action by the People’s Liberation Army, diminishing the likelihood of Beijing initiating a military adventure. President Lai’s defense proposal still requires approval from Taiwan’s legislature, which is currently dominated by the opposition, and the Kuomintang (KMT) party has voiced significant concerns regarding the proposed increase in defense spending to levels comparable to those currently being considered.

Military spending, projected to reach 5% of GDP, has prompted concerns, with KMT chair Cheng Li-wun recently warning that such levels could strain Taiwan’s finances and risk an escalating arms race. Ding told DW that President Lai, anticipating resistance from the opposition, strategically issued strong signals to Washington prior to formally submitting the budget to parliament. “In effect,” Ding stated, “Lai has already made his position clear to the US.” He added that the ruling party could frame the legislative process as beyond their control, shifting responsibility for any potential obstruction to the opposition.