Taiwan president says he “will not give up” on defense spending after cuts

NEW TAIPEI, TAIWAN, June 16 (Reuters) – Taiwanese President Lai Ching-te said on Tuesday that he “will not give up” on increasing defense spending, after the island’s parliament, with an opposition majority, last month approved just two-thirds of a supplementary budget of US$40 billion.

Taiwan’s government is prioritizing drones and other asymmetric systems for its military modernization program, but Parliament has only approved the purchase of weapons from the United States. He vetoed resources for domestically-made drones and missiles that ⁠Lai ‌wants to better deter China, which considers the democratically-governed ⁠island to be part of its own territory.

“Regarding the big cuts in the special national defense budget, we will not give up,” he said at a military base in New Taipei.

“We will propose separate special legislation or support the Armed Forces through supplemental budgets and increases in the government’s annual budget, to ensure that national defense equipment and infrastructure projects proceed without setbacks.”

Lai wants to increase defense spending to 5% of GDP by 2030 from around 3% currently, in line with calls from US President Donald Trump’s administration for allies to spend more on their armed forces. The US is Taiwan’s most important international supporter and arms supplier, despite a lack of formal diplomatic relations.

Lai said that in the face of “rapidly changing regional circumstances,” Taiwan’s armed forces must enhance combat training and make good use of technologies such as drones.

The top US diplomat in Taipei said this month that Taiwan needs to “spend smarter” on its defense and learn lessons about drone use from the wars in Ukraine and the Middle East to ensure a military balance with China.

Lai also visited important radar stations in the mountains around Taipei on Tuesday, which closely monitor Chinese movements.

“I saw our military men ⁠and women monitoring air activity 24 hours a day, identifying targets in the waters off northern Taiwan and transmitting intelligence information. Their work provides the most immediate and accurate support for the overall defense response,” he said.