TAIPEI (Taiwan News) — American Institute in Taiwan Director Raymond Greene said Thursday the US expects Taiwan to raise its defense spending to 5% of GDP and urged the Legislative Yuan to "quickly" pass the special defense budget.

Last year, President Lai Ching-te (賴清德), who has vowed to raise the defense budget to 5% of GDP by 2030, proposed a key defense procurement plan of US arms worth NT$1.25 trillion (US$39 billion). After months of delays and pressure from Washington, the opposition-controlled legislature this week began reviewing three competing versions of the bill, per AFP.

The KMT has proposed allocating NT$380 billion for US arms purchases while keeping options open for additional acquisitions. Meanwhile, the TPP version includes proposals for five major arms purchases with a spending cap of NT$400 billion. 

At an American Chamber of Commerce event, Greene said, “President Trump has pressed allies and partners to increase defence spending to 5% of GDP to share with us the financial burden of maintaining peace. Taiwan is no exception to this expectation.”

AFP said he added, “We encourage all the parties in Taiwan's legislature to work through political differences and quickly pass a special defense budget that demonstrates Taiwan's commitment to its self-defense by funding the acquisition of critical defense capabilities.”

Although the US and Taiwan do not have formal diplomatic relations, Washington remains Taipei’s most important security partner. Greene said that under the Taiwan Relations Act, passed by the US Congress in 1979, which commits the US to providing arms to Taiwan, Washington’s commitment remains “rock solid.”