Booming Taiwan can well afford more military spending, president says

(Reuters)

TAIPEI, March 14 – Taiwan can well afford ​a $40 billion special defence budget given its booming economy, President Lai Ching-te ‌said on Saturday, citing a U.S. emphasis on collective burden-sharing.

Lai’s proposed spending, which he says is needed to better face a rising threat from China, has been bogged down in parliament, where the ​opposition, which has a majority of seats, complains that the plans are ​unclear and says it cannot sign “blank cheques”.

Marking the 30th anniversary of Taiwan’s ⁠first direct presidential election, when China fired missiles into the waters around the island ​hoping to influence the result, Lai said in a speech that his government was ​determined to defend Taiwan and its hard-won democratic system.

“With Taiwan’s economic growth, we can absolutely afford it,” he said of the eight-year special defence spending plan. “If we look at the United States’ National Security ​Strategy, the U.S. emphasises collective defence and burden-sharing.”

Tech powerhouse Taiwan, the dominant producer of ​advanced semiconductors, has boomed thanks to demand for artificial-intelligence applications. Its economy expanded at its fastest pace ‌in 15 ⁠years in 2025.