Taiwanese President Vows to Increase Island’s Defense Spending, in New Year’s Address

Taiwanese President Lai Ching-te delivers his 2025 New Year's address in Taipei, Taiwan, on Jan. 1, 2025. Taiwan’s Presidential Office Building

TAIPEI, Taiwan—Taiwanese President Lai Ching-te has pledged to increase the island’s defense spending and join forces with other democracies to confront threats posed by authoritarian governments.

In his first New Year’s address since taking office in May, Lai said Taiwan is an integral part of the “line of defense of democracy” globally.

“In this new year, the changing international landscape will present democratic nations around the world with many grave challenges,” Lai said on Jan. 1, according to an official English translation of his speech.

“We are seeing the continued convergence of authoritarian regimes including China, Russia, North Korea, and Iran, threatening the rules-based international order and severely affecting peace and stability in the Indo-Pacific region and the world at large.”

In recent years, the Chinese Communist Party (CCP) has used a variety of “gray zone” tactics to put pressure on Taiwan, from holding large-scale military drills, dispatching fighter jets and warships to areas near the island nation, and flying balloons directly over it, to enticing Taiwan’s allies to switch their diplomatic recognition to China.

The CCP considers Taiwan to be part of its territory and has never renounced the use of force to seize the island. The Chinese regime reiterated its threat on Tuesday, when CCP leader Xi Jinping said in his New Year’s speech that “no one can ever stop China’s reunification” with Taiwan.

In response to the CCP’s threat, Taiwan has extended its compulsory military service from four months to one year, starting in January 2024. Additionally, Taiwan has been stocking up on weapons for defense purposes from the United States, its biggest arms supplier and unofficial ally.

“Peace and stability in the Taiwan Strait are essential components for global security and prosperity,“ Lai said. ”Taiwan needs to prepare for danger in times of peace.

“We must continue increasing our national defense budget, bolster our national defense capabilities, and show our determination to protect our country.”

In August, Taiwan’s Cabinet proposed a defense budget of NT$647 billion (about $20 billion) for 2025, making a 7.7 percent year-on-year increase, according to the island’s government-run Central News Agency. The defense expenditure represented 2.45 percent of Taiwan’s gross domestic product, up from 2.5 percent in 2023 and 2024, the outlet said.

In October, the United States approved for the first time the sale of an advanced surface-to-air missile system that has been battle-tested in Ukraine. The system, officially known as the National Advanced Surface-to-Air Missile System, was part of a nearly $2 billion arms sale package to Taiwan that included two radar systems.

Reps. John Moolenaar (R-Mich.) and Raja Krishnamoorthi (D-Ill.), chair and ranking member of the House Select Committee on the CCP, respectively, applauded the Biden administration’s decision, saying the sale of NASAMS and radars “will increase deterrence in the Indo-Pacific,” according to a statement issued on Oct. 31.

“These systems have contributed to Ukraine’s defense against Russia’s brutal and unprovoked aggression and will similarly enhance Taiwan’s defensive capabilities against the Chinese Communist Party’s military threats,” the two lawmakers stated.

During his address, Lai said Taiwan should work with democratic countries to “enhance the resilience of supply chains for global democracies.” He identified key areas for collaboration with like-minded countries, including unmanned aerial vehicles, low-orbit communications satellites, robots, military, security and surveillance, and renewable energy technology.

Lai also emphasized the need for Taiwan to uphold democracy amid domestic political disputes.

In December, the Kuomintang-led opposition passed three bills following a physical altercation among legislators over them. These bills aim to make recall votes for elected officials more challenging, adjust the central government’s budget allocation, and restrict the Constitutional Court’s authority to rule on certain cases.

“Domestic competition among political parties is a part of democracy,“ he said. ”But domestic political disputes must be resolved democratically within the constitutional system. This is the only way democracy can continue to grow.”

Reuters and The Associated Press contributed to this report.