How Trump’s Beijing bargaining could derail Taiwan’s multibillion-dollar defence budget

Taiwan’s parliament is set to prioritise review of a disputed NT$1.25 trillion (US$40 billion) special defence budget bill when its new session begins on Tuesday, as pressure mounts from Washington.
But US President Donald Trump’s recent remarks about consulting Chinese President Xi Jinping on arms sales could complicate the debate, potentially giving Taipei’s opposition parties greater room to manoeuvre and reshape the final version of the bill, according to analysts.

The renewed push follows an unusual bipartisan letter from 37 US lawmakers on February 12 urging Taiwan’s legislature to fully fund the eight-year package.

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The lawmakers warned that Beijing’s “military pressure is intensifying” and that approving only part of the budget proposed by Taiwanese leader William Lai Ching-te in November “could weaken deterrence”.

They stressed that Taipei “must demonstrate resolve by increasing defence spending” in line with Lai’s proposal.

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In response, Taiwan’s legislative speaker Han Kuo-yu said the bill would be “given top priority” once lawmakers returned to work on February 24 after the Lunar New Year recess.

He described Taiwan-US ties as “grounded in shared democratic values and a joint commitment to maintaining stability in the Indo-Pacific”.

South China Morning Post

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