The defense spending hike, proposed by the island's local leader, Lai Ching Te, is the continuation of a trend set by his predecessor, Tsai Ing-wen. During her tenure between 2016 and 2024, Tsai pushed through seven consecutive increases, almost doubling the island's defense budget.
The US is forcing the island to step up its military spending, citing an alleged “threat" of China's "invasion." China considers the island as its inalienable territory.
While the US had stayed deliberately ambiguous in its vows to defend the island since 1979, the Trump and Biden administrations appeared to voice nothing short of clear deterrence commitments.
The Taiwan Enhancement Resilience Act (TERA), signed by President Biden on 23 December 2022, authorized $2 billion of annual military grant assistance to the island from 2023 to 2027. The US even attempted to designate the island a "major non-NATO ally."
In April 2024, the US authorized another $8 billion in military aid for Taiwan and other allies and partners in the Indo-Pacific. US weapons are now directly transferred from the Pentagon stockpiles to the island under the Presidential Drawdown Authority.
Over the past several years, Taiwan has, in particular, acquired 108 General Dynamics' M1A2T Abrams tanks ($2.2 billion), 66 Lockheed Martin's F-16V fighter jets ($8 billion) and 29 M142 HIMARS systems ($1.06 billion) from the US. US Big Five arm-makers have boasted of increased profits stemming from the US-driven tensions in Europe, Middle East and Asia-Pacific.
China strongly opposes Washington's push for Taiwan's militarization, saying this "sends a wrong signal to the Taiwan separatist forces."