TAIPEI (Taiwan News) — Hudson Institute senior fellow Jason Hsu (許毓仁) urged Taiwan’s opposition parties to set aside partisan differences and approve the government’s defense budget to strengthen deterrence against China’s military threats.

At a hearing held Wednesday by the US–China Economic and Security Review Commission, Hsu, also a former KMT legislator, highlighted the importance of Taiwan stepping up efforts to enhance its military capabilities. He said national security should not become a tool for partisan competition, per CNA.

The Cabinet has proposed a defense budget of NT$949.5 billion (US$30.1 billion) for this year, which would exceed 3% of GDP for the first time if approved by the Legislative Yuan.

In November, President Lai Ching-te (賴清德) said the government plans to allocate NT$1.25 trillion for a special military budget from this year through 2033. The funding aims to strengthen Taiwan’s precision strike capabilities, defensive strength, and the development of the domestic defense industry.

As of January, KMT and TPP legislators, who hold a majority in the Legislative Yuan, had blocked the special budget from review 10 times. On Tuesday, the legislature approved sending the proposal to the Foreign and National Defense Committee and the Finance Committee for review.

Hsu said Taiwan’s undersea cable infrastructure had been targeted by Chinese vessels. He noted that Taiwan is connected to the world through 24 undersea cables linking its semiconductor manufacturing network, financial markets, corporate communications, and military command systems.

If the cables were disrupted, Taiwan could face daily economic losses of more than NT$1.73 billion, Hsu warned. He emphasized Taiwan’s critical role in the global semiconductor sector and its strategic importance in the region.

Between January and February 2025, Taiwan experienced four undersea cable damage incidents. One involved a vessel flying the Tanzanian flag but crewed by Chinese nationals, which turned off its positioning system before damaging a critical trans-Pacific cable.

Another incident involved the Chinese ship Hong-Tai 58, which cut the cable connecting Taiwan and Penghu. The vessel had previously operated under two names and three nationalities.

In February 2023, two undersea cables connecting Taiwan and Matsu were damaged within six days. This left 14,000 residents in Matsu without internet access for more than 50 days until the cables were fully repaired.

Hsu said Taiwan took about 50 days to repair damaged undersea cables, mainly because it relied on foreign repair ships, delaying restoration. He urged the country’s three telecom operators to build their own vessels to speed up future repairs.

Hsu also called on the government to store backup data in the cloud and maintain at least 30% of transmission capacity in reserve, ensuring Taiwan’s internet would not go down immediately if China cut the main undersea cables.

Damaging undersea cables is considered an early-stage action in a conflict. Hsu said China could disrupt 95% of Taiwan’s internet access by cutting three major undersea cables near the Bashi Channel. Combined with cyberattacks and satellite interference, such actions could severely cripple Taiwan’s communications.

To better protect undersea cables from potential Chinese attacks, Hsu urged the US Congress to advance the Taiwan Undersea Resilience Act, update international laws on cable protection, and strengthen sanctions against illegal, unreported, or unregulated fishing vessels that damage cables.

Hsu also suggested Taiwan develop its own cable repair capabilities and cooperate with Japan to improve undersea cable security. He called on the Coast Guard Administration to increase monitoring of critical cables.

In addition, Hsu recommended Taiwan spread out its cable landing stations — the points where undersea internet cables come ashore and connect to the country’s networks — to ensure more resilient data transmission inland.

Attacks on undersea infrastructure are becoming a common tactic in modern warfare, Hsu added. He said such destruction poses a threat to national security and also tests the resilience of the US and its democratic allies.