TAIPEI, November 27, 2025 – Taiwan has initiated preliminary talks with the United States regarding arms purchases as part of a $40 billion supplementary defence budget covering 2026-2033, Defence Minister Wellington Koo confirmed on Thursday. The budget, announced by President Lai Ching-te earlier this week, underscores Taiwan’s commitment to strengthening its defence capabilities amid rising pressure from China.

U.S. Arms Coordination

Speaking to reporters, Koo emphasized that the proposed arms purchases would constitute a significant portion of the budget. “We have already completed preliminary coordination with the United States on planning this military procurement project,” he said.

Taiwan has formally obtained quantities, cost estimates, timelines, and other key procurement details from the U.S. Department of Defense, demonstrating Washington’s willingness to supply the weapons. However, Koo noted that no public disclosure can occur before formal notification to the U.S. Congress.

The Pentagon did not immediately respond to requests for comment.

Parliamentary Approval Required

The new spending plan must be approved by Taiwan’s opposition-controlled parliament, where the Kuomintang criticized President Lai’s announcement. The party called the plan fiscally imprudent due to its reliance on borrowing, stating that national defence investment must be balanced with responsible governance.

Taiwan’s Premier Cho Jung-tai urged legislators to support the spending, citing the heightened threat from China. “If you don’t have a country, how can you have a home?” Cho said.

Economic Impact and Job Creation

Koo highlighted the budget’s economic benefits, estimating the creation of 90,000 jobs and a direct economic boost of T$400 billion.

Context: Taiwan-China Tensions

China, which claims Taiwan as its territory, has intensified military and political pressure in recent years. Taiwan maintains that only its people can decide their future. President Lai’s defence expansion, including a push to raise spending to 5% of GDP by 2030, is viewed as a deterrent to Beijing’s ambitions.

Since President Trump took office in January, only one new arms sale to Taiwan has been approved—a $330 million package for fighter jets and aircraft components, announced this month. U.S. officials have indicated plans to increase weapons sales to Taiwan to levels exceeding Trump’s first term, reflecting broader strategic efforts to deter China.

China has condemned Taiwan’s new defence spending plans, continuing a long-standing pattern of objections to Taipei’s military enhancements.

Looking Ahead

Taiwan’s government appears determined to balance economic prudence with national security, while deepening military cooperation with the U.S. The supplementary defence budget and ongoing arms discussions aim to ensure Taiwan’s readiness in the face of ongoing regional tensions, particularly in the Taiwan Strait.