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US Warns Taiwan Over Defence Spending Delays Amid Rising China Tensions
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US Warns Taiwan Over Defence Spending Delays Amid Rising China Tensions

The United States has expressed concern over delays in Taiwan’s military spending, warning that postponing key defence projects could amount to a strategic concession to China. The comments came after Taiwan’s parliament approved only part of a proposed $40 billion defence package requested by President Lai Ching-te.

Tristan R.
By Tristan R.

Senior Author · May 9, 2026

2 min
Key takeaways
Taiwan Defence Budget Faces Political Delays The United States has expressed concern over delays in Taiwan’s military spending, warning that postponing key defence projects could amount to a strategic concession to China.
The comments came after Taiwan’s parliament approved only part of a proposed $40 billion defence package requested by President Lai Ching-te.
Taiwan’s opposition controlled parliament approved roughly two-thirds of the requested funding, mainly focused on purchasing US-made military systems.

Taiwan Defence Budget Faces Political Delays

The United States has expressed concern over delays in Taiwan’s military spending, warning that postponing key defence projects could amount to a strategic concession to China. The comments came after Taiwan’s parliament approved only part of a proposed $40 billion defence package requested by President Lai Ching-te.

Taiwan’s opposition controlled parliament approved roughly two-thirds of the requested funding, mainly focused on purchasing US-made military systems. However, several domestic defence projects, including drone programs and missile development, were excluded from the package.

US Says Delays Could Benefit China

A US State Department spokesperson welcomed the partial approval but warned that delaying the remaining defence capabilities may weaken Taiwan’s ability to respond to growing military pressure from China.

Beijing has increased military activity around Taiwan in recent years, while continuing to claim the island as part of its territory.

Taiwan’s Defence Ministry said the funding cuts may create operational gaps, particularly affecting the Chiang Kung anti-ballistic missile system and domestically developed drone programs designed to strengthen asymmetric warfare capabilities.

President Lai acknowledged the approved funding as progress but stressed that further delays could undermine Taiwan’s broader defence readiness and increase regional security risks.

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About the author

Tristan R.
Tristan R.

8+ years covering crypto markets, macro, and geopolitics. Previously at Decrypt and CoinDesk. Focused on the intersection of digital assets and traditional finance.