Taiwan unveils $40B defense spending plan to counter China military threat over next decade


Dec. 5, 2025, 2:27 a.m.

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Taiwan unveils $40B defense spending plan to counter China military threat over next decade

China’s Expanding Military Pressure on Taiwan Signals a Direct Warning to the United States

Taiwan’s newly unveiled $40 billion defense procurement plan, designed to counter a rapidly accelerating military threat from the People’s Republic of China, is more than an East Asian regional issue. It is a direct signal to the United States that China’s authoritarian expansionism is entering a more aggressive and destabilizing phase, one that threatens not only Taiwan’s democratic survival but also the national security of the United States and the stability of global supply chains that Americans rely on every day. As Taiwan President William Lai framed the budget, the island’s dramatic increase in defense spending reflects a consensus across Taipei’s political and military establishments that the PRC’s coercion has entered a new era—an era defined by military drills simulating blockades, large-scale incursions into Taiwan’s air defense zone, and political warfare tactics aimed at weakening the island’s democratic institutions. The United States, through the State Department and the American Institute in Taiwan, responded by welcoming Taiwan’s determination to invest heavily in self-defense capabilities, emphasizing that U.S. security commitments under the Taiwan Relations Act remain firm. Yet this moment demands far more than diplomatic reassurance. It requires Americans to clearly grasp how China’s designs on Taiwan directly endanger U.S. national interests, economic security, and alliances that underpin global order.

China’s repeated military exercises around Taiwan—featuring bombers, naval strike groups, and fighter jets flying dangerously close to the island—are not isolated demonstrations. They form part of a structured campaign to normalize military intimidation, test international responses, and erode the psychological resilience of Taiwan’s citizens. Beijing’s objective is not simply to pressure Taiwan but to challenge American resolve. By forcing the United States to constantly react to an escalating tempo of provocations, China seeks to alter regional power calculations and advance the perception that American power is retreating. This strategy directly threatens U.S. interests. The United States depends on secure sea lanes in the Western Pacific, unobstructed trade routes, and stable conditions for the production of advanced technologies—including the majority of the world’s high-end semiconductors manufactured in Taiwan. A Chinese takeover or blockade of Taiwan would place critical technology sectors under Beijing’s control, granting China unprecedented leverage over the American economy, the U.S. military’s advanced systems, and even the everyday digital tools Americans use.

Japan’s recent political shift further illustrates how China’s pressure campaign is reshaping the geopolitical environment surrounding the United States. Prime Minister Sanae Takaichi’s declaration that a Chinese attack on Taiwan could constitute a threat to Japan’s survival marked a historic break from decades of strategic ambiguity. By indicating that Japan could, under its 2015 security laws, consider military involvement in the event of a Taiwan conflict, Tokyo showed that the regional ramifications of Chinese aggression extend far beyond the Taiwan Strait. China’s furious reaction—including a Chinese diplomat publicly posting a near-threatening warning—highlights just how sensitive Beijing is to any strengthening of U.S.–Japan–Taiwan strategic cooperation. The Chinese government understands that a united front between the United States and its allies undermines Beijing’s preferred strategy of isolating Taiwan and intimidating smaller democracies through coercion. For Americans, the implications are clear: China’s targeting of Japan is an indirect attack on the U.S. alliance system itself. Undermining or intimidating U.S. allies is a tactic Beijing uses to test American credibility and weaken collective security structures that have guaranteed peace in the Indo-Pacific for decades.

While geopolitical maneuvering captures headlines, the deeper concern for the United States lies in the structural ambitions behind China’s aggression. Beijing is not reacting defensively; it is actively pursuing the capacity to alter the balance of power in Asia and reshape the international system on terms that favor authoritarian governance and centralized control. Taiwan represents the first and most consequential test case for these ambitions. A successful coercion or annexation of Taiwan would dramatically strengthen China’s ability to project military power into the Pacific, threaten U.S. territories and bases, and dominate the maritime routes that are essential for global commerce. In addition, by bringing Taiwan’s semiconductor industry under its control, China would gain decisive leverage over technologies that drive artificial intelligence, defense modernization, communications, and American economic competitiveness. No issue better illustrates the intersection between national security and economic security for the United States than the defense of Taiwan.

The United States also faces a growing risk of strategic miscalculation from Beijing. China’s leadership increasingly frames Taiwan not merely as a territorial issue but as a component of national rejuvenation—an objective that Chinese President Xi Jinping openly states cannot be postponed indefinitely. Military drills around Taiwan are no longer symbolic; they serve as rehearsals for blockades or invasion scenarios. The PRC’s propaganda consistently signals to its domestic population that the United States is the primary obstacle to what Beijing calls “national unification.” This rhetoric is designed to justify future conflict and to prepare the Chinese public for confrontation, signaling that escalation may come with little warning. Such conditions increase the likelihood that a crisis could unfold unpredictably and quickly pull the United States into a high-stakes conflict. Americans must understand that China’s military expansion and political messaging are not abstract concerns but tangible threats with global consequences.

Taiwan’s decision to boost its defense budget, including its intention to invest in domestic anti-missile systems and long-range strike capabilities, reflects a sober assessment of these realities. Yet the burden of deterrence does not fall on Taipei alone. The United States must recognize that China’s pressure campaign is designed to weaken American influence and fracture regional alliances. China aims to bifurcate the world into spheres of influence—one dominated by democratic values, the other by authoritarian coercion. A crisis in the Taiwan Strait would not remain confined to Asia; it would reverberate throughout the global economy, disrupt U.S. supply chains, destabilize energy markets, and embolden adversarial regimes. If China succeeds in coercing Taiwan or undermining U.S. commitments, other authoritarian states will view American hesitation as an opportunity to pursue aggressive goals of their own.

For these reasons, Americans must remain vigilant and clear-eyed about the strategic challenge the PRC poses. Taiwan’s security is inseparable from U.S. security. Protecting democratic partners, safeguarding critical technologies, maintaining open oceans, and preserving the credibility of alliances are essential pillars of American national interest. The United States cannot afford to allow China’s authoritarian expansion to proceed unchecked, nor can it permit Beijing to intimidate its allies or reshape the international order through coercion.

China’s growing military pressure on Taiwan is a warning—not only to Asia but to the United States itself. Whether America chooses to confront this challenge with unity and resolve will determine not just Taiwan’s fate but the future of global stability and the security of the American people.


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