TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Friday that cutting Taiwan’s proposed defense budget would weaken national security and reduce defense autonomy, CNA reported.

Speaking at the Taiwan International Machine Tool Show in Taichung, Lai said the special defense budget must pass in full and on time. He said any cuts would prevent Taiwan from building a complete missile defense system, which he described as a key part of the “T-Dome.”

Lai said Taiwan’s defense autonomy depends on long-term planning and stable funding. He warned that if domestic defense capabilities are reduced, Taiwan would lose its ability to independently develop and produce critical military systems, UDN reported.

He added that the defense budget is closely tied to economic development, especially for manufacturing industries. Lai said sectors such as machine tools, machinery, and precision manufacturing are already supporting defense production and could expand further with government backing.

The president said Taiwan’s industries can shift roles when needed, producing civilian equipment in normal times and defense systems during emergencies. He said this flexibility strengthens both national security and industrial resilience, per Liberty Times.

Lai said the proposed eight-year defense plan totals NT$1.25 trillion (US$40 billion) and is within Taiwan’s economic capacity. He added the investment will support missile systems, drones, and other advanced technologies, while also integrating artificial intelligence into military operations, per SETN.

He also noted that the government is working to balance security and economic growth through its broader national development strategy. Lai said passing both the central government budget and the defense budget is essential to ensure Taiwan’s stability and continued growth.

Referring to global trends, Lai said Taiwan’s industries are adapting to external challenges, including trade pressures and changing supply chains. He said stronger cooperation between government and industry will help Taiwan remain competitive while improving its defense capabilities, per Yahoo News.