Taiwan to increase defence budget by $40 billion due to deteriorating relations with China

Taiwan's President Lai Ching-te announced Wednesday that the government is preparing a $40 billion supplemental defense budget aimed at underscoring the island's resolve to defend itself against the growing threat from China.

Beijing regards Taiwan as its territory and has significantly increased military and political pressure in the past five years, something Taipei vehemently rejects.

Lai pointed out that history shows that compromises in the face of aggression only lead to "subjugation." The new package of 1.25 trillion Taiwan dollars is intended to bolster the modernization of the military and prepare the country for China's growing military activity around the island.

Taiwan is also responding to US calls for it to invest more in its own defence. Next year, the defence budget is set to reach 3.32 per cent of GDP - the highest since 2009. The president added that this is not an ideological dispute, but a "struggle between defending a democratic Taiwan and refusing to become 'China's Taiwan'".

Beijing has criticised the new plans, saying Taipei is wasting resources and is subject to "foreign influence".

(reuters, est)