TAIPEI (Taiwan News) — American Institute in Taiwan Director Raymond Greene reaffirmed Washington’s support for Taiwan’s defense in a TVBS interview on Friday.

Greene said that the Trump administration has asked all allies and partners, including Taiwan, to increase defense spending to 5% of GDP, per CNA. The US welcomes President Lai Ching-te’s (賴清德) goal of reaching this target by 2030, the director said.

The US supports the content of the proposed NT$1.25 trillion (US$40 billion) special defense budget and hopes that all political parties can reach a consensus, given the urgency of the threats Taiwan faces, Greene said. The budget reflects Taiwan’s investment in its defense industrial base, particularly in the production of drones and unmanned systems, which the US considers equally important, he added.

Greene said investment in the defense industrial base enhances Taiwan’s deterrence capabilities. Given Taiwan’s strong industrial foundation, it can support the domestic production of drones, ammunition, and other equipment. This would strengthen Taiwan’s resilience during a conflict or blockade, he said.

The US is working with regional partners such as Taiwan to ensure investments are directed toward the capabilities needed to achieve deterrence, Greene said.

Greene said the US values Taiwan’s potential as a partner in defense industry cooperation. While the US previously relied on a small number of major defense contractors, rapid technological changes have led to greater reliance on startups, many of which are small in scale.

He added that some Taiwanese companies, which have spent decades in the commercial sector, are now recognizing opportunities in the defense field, though this requires different procurement systems and a different mindset. Greene said he believes the Legislative Yuan will eventually reach a conclusion that supports Taiwan’s defense needs, industrial development, and proper oversight.