The U.S. State Department warned Taipei strongly, saying that the recent legislative delays and cuts to Taiwan’s defense spending were a “concession” to the Chinese Communist Party. Taiwan’s opposition-controlled legislature approved a special defense budget of some $24 billion (NT$780 billion) on Friday, May 8, 2026, a large sum but about a third less than the $40 billion sought by President Lai Ching-te. While Washington welcomed the eventual passage of the bill, officials expressed deep concern that the “unhelpful stalling” and the exclusion of key domestic projects could embolden Beijing and threaten regional security.
TThe approved package is largely centered on American-made hardware, including the HIMARS rocket system, but is missing key funding for Taiwan’s own defense projects. In particular, the legislature slashed funding for the “Strong Bow” anti-ballistic missile system and domestic sea-attack drones — both key components of Taiwan’s “asymmetric warfare” strategy. Taiwan’s Defense Ministry cautioned that such omissions create “capability gaps” that compromise the integrity of the island’s air defense.
TThe friction comes at a particularly sensitive moment, as U.S. President Donald Trump is due to meet Chinese President Xi Jinping in Beijing next week. The friction comes at a particularly sensitive moment, as U.S. President Donald Trump is due to meet Chinese President Xi Jinping in Beijing next week. Analysts say the legislative impasse in Taipei, due to opposition concerns over transparency and “blank checks”, has unwittingly given Beijing a diplomatic advantage ahead of the summit. Analysts say the legislative impasse in Taipei, due to opposition concerns over transparency and “blank checks”, has unwittingly given Beijing a diplomatic advantage ahead of the summit. The U.S. is casting the budget delays as a gift to the CCP, signaling that Taiwan’s internal political disputes are becoming a liability to the broader strategy of deterring Chinese aggression. The U.S. is casting the budget delays as a gift to the CCP, signaling that Taiwan’s internal political disputes are becoming a liability to the broader strategy of deterring Chinese aggression. President Lai shared the concerns, saying any lapse in defense integrity would bring the “shared security risks” for the Taiwanese people. President Lai shared the concerns, saying any lapse in defense integrity would bring the “shared security risks” for the Taiwanese people.
