Taiwan Considers $33bn Defence Package to Counter China Threat

Taiwan is weighing a record defence package worth up to $33 billion as part of efforts to strengthen its military readiness against possible Chinese aggression, a senior lawmaker has revealed.

According to Wang Ting-yu of the ruling Democratic Progressive Party (DPP), the Ministry of National Defence is preparing a special seven-year budget estimated between NT$800 billion and NT$1 trillion ($26–33 billion). The final figure will depend on the outcome of ongoing negotiations with Washington, Taiwan’s main arms supplier.

“We want to build a complete defence ecology to defend our country,” Wang told AFP, describing the proposal as a “huge” leap in Taiwan’s self-defence capacity.

The planned programme includes:

• Integrating Taiwan’s existing air defence systems.

• Acquiring advanced foreign technology to detect drones, rockets, and stealth missiles.

• Expanding local capacity for ammunition production and storage.

Beijing claims Taiwan as part of its territory and has repeatedly warned it could seize the island by force. In response, Taipei has steadily increased defence spending, with President Lai Ching-te’s government announcing plans last month to raise the 2026 defence budget to NT$949.5 billion, equivalent to over 3% of GDP, and targeting 5% by 2030.

Wang noted that China’s development of fifth-generation fighter jets and stealth weapons makes advanced radar and sensor systems critical for Taiwan’s survival. “If you cannot detect them, all kinds of fire units are useless,” he warned.

The lawmaker also admitted the timing of the plan ties into broader trade talks with Washington, as Taipei pushes for a reduction in U.S. tariffs on its exports. “Yes,” he said when asked if the initiative could bolster Taiwan’s negotiating position.

The defence ministry declined to comment on the proposal. If the cabinet endorses the spending package, it would still need approval from the opposition-controlled parliament before implementation.