Taiwan president says he ‘won’t give up’ on defence spending after parliament cuts

By Ann Wang

NEW TAIPEI, Taiwan, June 16 (Reuters) – Taiwan President Lai Ching-te said on Tuesday he would “not give up” on increasing defence spending, after the island’s opposition-majority parliament last month passed just two-thirds of a $40 billion supplementary budget.

Taiwan’s government is prioritising drones and other asymmetric systems for its military modernisation programme but parliament only signed off on the purchase of U.S. weapons. It vetoed funds for domestically made drones and missiles which Lai wants to better deter China which views the democratically governed island as its own territory.

“Regarding the major cuts to the special national defence 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 supplementary budgets and increases to the annual government budget, to ensure that national defence equipment and infrastructure projects proceed smoothly.”

Lai wants to increase defence spending to 5% of GDP by 2030 from around 3% currently, in line with calls from the Trump administration for allies to spend more on their military. The U.S. is Taiwan’s most important international backer and arms supplier despite the lack of formal diplomatic ties.

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

The top U.S. diplomat in Taipei said this month that Taiwan needs to “spend smarter” on its defences and learn lessons on using drones from the Ukraine and Middle East wars to ensure a military balance with China.

Lai also visited on Tuesday key radar stations in the mountains around Taipei which keep a close watch on Chinese movements.

“I saw our servicemen and women monitoring aerial activity around the clock, identifying targets in the waters off northern Taiwan, and transmitting intelligence. Their work provides the most immediate and precise support for the overall defence response,” he said.

(Reporting by Ann Wang; Writing by Ben Blanchard; Editing by Edwina Gibbs)