By Obinna Uballa
Taiwanese President Lai Ching-te has announced a sweeping supplementary defence budget of 1.25 trillion New Taiwan dollars (about $40 billion), citing an unprecedented acceleration of Chinese military activities around the island.
Speaking at a press briefing on Wednesday, Lai said the additional spending is necessary as Beijing intensifies military drills, “gray-zone” coercion, and political interference aimed at destabilising Taiwan’s democracy. He warned that China is building toward its goal of being able to seize Taiwan by force by 2027.
According to a CNBC translation of his remarks, Lai accused Beijing of expanding its “infiltration and influence campaigns,” deploying a wide range of tools to manipulate public opinion, sow division, and undermine institutions in Taiwan.
He also highlighted China’s “unprecedented military buildup” and growing assertiveness across the Taiwan Strait, the East and South China Seas, and the broader Indo-Pacific.
Beijing, which views Taiwan as part of its territory, has repeatedly issued warnings over what it calls “independence provocations.” President Xi Jinping has described reunification as “a historical inevitability,” a claim Taiwan firmly rejects.
China raised its own defence budget by 7.2% this year, reaching roughly $245 billion, with significant assets stationed near the Taiwan Strait, according to analysts at the Center for Strategic and International Studies.
Lai said Taiwan must rapidly strengthen its self-defence capabilities to reach “high combat readiness” by 2027, the year U.S. and Taiwanese officials believe Beijing could aim for full operational preparedness for a potential attack.
The comments come amid a diplomatic clash between China and Japan. Beijing has accused Tokyo of meddling in its internal affairs after Japanese Prime Minister Sanae Takaichi said earlier this month that any conflict involving Taiwan could trigger a “survival-threatening situation” for Japan.
Beijing condemned the remarks as “egregious” and demanded a retraction.
The tensions have also drawn in Washington. U.S. President Donald Trump spoke separately with Xi and Takaichi on Monday, with analysts suggesting Xi may have sought Trump’s help in pressing Japan to tone down its stance on Taiwan.
Shortly before Lai’s address, China’s Taiwan Affairs Office renewed its criticism of the Democratic Progressive Party, accusing it of endangering Taiwan’s future and reiterating Beijing’s opposition to any foreign support for “Taiwan independence.”
