TAIPEI (Taiwan News) — A stalemate over Taiwan’s proposed NT$1.25 trillion (US$40 billion) special defense budget is severely undermining the country’s defense capabilities, DPP Legislator Chen Kuan-ting (陳冠廷) said.
Chen, a co-chair of the Legislative Yuan’s Foreign Affairs and National Defense Committee, said the KMT’s intention to reduce the budget to NT$380 billion would eliminate funding for unmanned systems, one of the most important parts of the package, Nikkei Asia reported. He warned that the move risks weakening Taiwan’s message to its citizens, China, and foreign partners.
Drones have become central to the debate because recent global conflicts have shown how they can shape modern warfare. “From the war in the Middle East to Russia’s invasion of Ukraine, we see that no country can dismiss the importance of drones on the battlefield,” Chen said, per Nikkei Asia.
He said Taiwan must develop drones for air, land, and underwater use, while also building domestic production capacity to overcome enemy jamming or disruption. “While military procurement is important, commercial procurement and domestic production capabilities are just as important, or even more important,” he said.
Chen said that with the proposed budget, Taiwan could become a key player in the drone industry. “We have been an economic powerhouse. Now we hope to also be a defense powerhouse, just like South Korea,” he said, per Nikkei Asia.
The US has been pressuring Taiwan to invest more in its own defense. One senior Trump administration official told Nikkei Asia that if the KMT and TPP block the defense budget, “they are telling DC that they don’t care about their own defense — and we could just stop caring, frankly.”
Chen rejected the idea that the budget should be seen solely as a response to US pressure, saying, “We cannot outsource our defense to others.”
KMT Chair Cheng Li-wun (鄭麗文) has defended proposed defense cuts, arguing that more defense spending does not automatically guarantee security. After meeting Chinese leader Xi Jinping in Beijing, Cheng continued to promote peace through cross-strait dialogue.
She also accused the DPP of seeking money for corrupt purposes. Chen dismissed the accusation and noted that Taiwan’s legislature would still retain oversight over individual budgets.
The defense budget debate has also exposed divisions inside the KMT, according to Nikkei Asia. Taichung Mayor Lu Shiow-yen (盧秀燕) has suggested a larger budget of between NT$800 billion and NT$1 trillion, while Legislative Speaker Han Kuo-yu (韓國瑜) has urged quick passage of defense funding.
Chen praised these gestures but accused Cheng of suppressing “more rational voices” in her party. He also called on Taipei Mayor Chiang Wan-an (蔣萬安) to take a clearer position, which could help move budget negotiations forward.
On engagement with China, Chen said, “Dialogue without the backing of national defense is meaningless.”
The next round of budget talks is scheduled for Wednesday. So far, legislators have agreed that special budgets must be audited in accordance with the law, and any reallocation by authorities will require legislative approval.
They also agreed the act and its special budget will run from promulgation through Dec. 31, 2033.
