US presses Taiwan to approve $40 billion defence budget amid China tensions

TAIPEI: The United States has urged Taiwan’s opposition-led parliament to approve a “comprehensive” defence budget, warning that delays could undermine the island’s ability to strengthen its military readiness amid rising regional tensions with China.

The appeal comes as Taiwan’s government seeks approval for a $40 billion supplemental defence spending package, aimed at boosting both imported US weapons and domestically developed systems such as drones. The proposal, however, remains stalled in parliament due to political divisions.

In an interview with Taiwanese media, Raymond Greene, the de facto US ambassador in Taipei and head of the American Institute in Taiwan, said the proposed budget was critical for Taiwan’s security and international signalling.

“It is vital for Taiwan to pass a comprehensive budget package,” Greene said, adding that it would ensure the island acquires “the full range of defence capabilities it has requested.”

He said systems such as integrated air and missile defence platforms and drones were “critically important” and in high demand globally, citing their use in conflicts in Ukraine and the Middle East.

Taiwan President Lai Ching-te has proposed the multi-billion-dollar package as part of efforts to modernise the island’s defence posture and deter growing pressure from China, which considers Taiwan part of its territory.

Lai has maintained that only Taiwan’s people can decide the island’s future.

However, the opposition Kuomintang (KMT), which controls the legislature, has resisted fast-tracking the proposal, saying it supports defence spending in principle but will not approve “blank cheques” without further scrutiny.

The political deadlock has raised concerns in Taipei that delays could affect Taiwan’s position in the global defence procurement queue, particularly for U.S.-made weapons systems.

Speaking in parliament on Monday, Defence Minister Wellington Koo warned that the security threat facing Taiwan was not abstract.

“This is not just random talk,” he said, pointing to recent sightings of Chinese warships operating near waters southwest of Taiwan’s Penghu islands.

He said the issue “bears on the very survival of our country” and stressed the urgency of passing the defence budget.

The United States remains Taiwan’s most important international backer and primary arms supplier. In December, Washington approved an $11 billion arms package for Taipei, its largest ever for the island.

China has repeatedly objected to US arms sales to Taiwan, urging Washington to halt military support it says undermines its sovereignty claims.