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Taiwan’s Lai plans $40 bn defence upgrade to tackle Chinese threat — he hits political hurdle

Trending:Trump at DavosT20 WC DramaGreenland rowBoard of PeaceDeepinder Goyal steps downTaiwan’s Lai plans $40 bn defence upgrade to tackle Chinese threat — he hits political hurdleFP News Desk • January 22, 2026, 11:07:24 ISTWhatsapp Facebook TwitterA bitter political standoff in Taiwan is holding up President Lai Ching-te’s $40 billion defence push, even as US pressure mounts on the island to spend more on its own security amid rising tensions with ChinaAdvertisementSubscribe Join Us+ Follow us On GoogleChoose Firstpost on GoogleTaiwan's President Lai Ching-te. Image- ReutersTaiwan’s plans to significantly ramp up military spending have run aground, not because of a lack of urgency from the government, but due to a deepening political standoff at home. President Lai Ching-te’s proposal comes at a sensitive moment, as US President Donald Trump presses allies to take on a larger share of their own defence, especially Taiwan, which faces growing pressure from China. At the heart of the impasse is Lai’s ambitious plan to spend $40 billion over eight years on military equipment, much of it sourced from the US.

Reuters

Reuters

Credit: Taiwan's President Lai Ching-te. Image-

Key Highlights

  • Opposition lawmakers, who control Taiwan’s legislature, have blocked the proposal unless the president agrees to political concessions. STORY CONTINUES BELOW THIS ADA domestic fight with global consequencesThe deadlock goes beyond routine partisan rivalry. It raises uncomfortable questions about whether Taiwan can strengthen its defences fast enough while remaining a reliable partner to Washington.
  • Lai has pledged to push military and security spending above three percent of Taiwan’s economy this year, a move clearly aimed at reassuring the island’s most important security backer. More from World China fumes as US signs new trade deal with Taiwan to cut tariffs, boost chip sale Taiwan says it will remain world’s top AI chip maker after new US trade deal cuts tariffs, boosts investmentInstead, the plan has become tangled in budget disputes and legal battles between the ruling Democratic Progressive Party (DPP) and opposition parties.
  • Both sides accuse the other of breaking the law. Tensions escalated when Lai’s premier refused to approve legislation passed by the opposition that would redirect tax revenue from the central government to local administrations.
  • Opposition lawmakers called the move unconstitutional, labelled Lai a dictator, and even initiated impeachment proceedings.“We have never experienced such a massive crisis of constitutional rule of law as we have right now,” said Weng Hsiao-ling of the Nationalist Party, as quoted by the New York Times (NYT).
  • “Executive power is not operating according to the law,” he added. Quick ReadsView AllNew Zealand: Heavy rain triggers landslide at campsite; voices of those buried heard beneath rubbleUS officially exits WHO today citing 'mishandling of Covid-19 pandemic that arose out of Wuhan, ChinaAccusations and distrust deepen dividesThe DPP, meanwhile, says the opposition is deliberately paralysing the government and undermining Taiwan’s security.
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Sources

  1. Taiwan’s Lai plans $40 bn defence upgrade to tackle Chinese threat — he hits political hurdle

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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