US Concerned Taiwan's Defence Budget Delay Is 'Concession' to China
US officials are voicing concern that Taiwan's decision to delay its enlarged defence budget effectively concedes ground to Beijing. The slippage comes weeks before a Trump-Xi summit and complicates Washington's message on cross-strait deterrence.
US officials say Taiwan's parliamentary delay of its enlarged defence budget signals weakness toward Beijing. In private conversations, the slippage has been described as a concession to China, with the opposition KMT objecting to several new line items.
Taipei had pledged to lift defence spending to roughly 3% of GDP. The delayed package covered naval defence, coastal missile systems and drone procurement. Pentagon sources say the postponement weakens deterrence messaging at a moment when the People's Liberation Army has stepped up the tempo of cross-strait drills.
The development may push Taiwan higher on the agenda for the upcoming Trump-Xi summit. Taipei officials called the delay technical and said the spending would be approved by year-end. Markets shrugged, with TSMC and the Taiwan dollar reacting modestly.
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