Taiwan opposition cuts Lai's defence budget despite US warnings
Taiwan's opposition KMT and TPP forced through cuts of about 2.8 billion dollars from President Lai Ching-te's defence budget. The vote came despite repeated US calls for higher spending. China responded with sharp warnings.
In the Yuan vote, the KMT and TPP cut about 11 per cent from the F-16V upgrade, defence-industry investment and cyber-defence lines. Lai's Democratic Progressive Party called the move a 'defence betrayal' and said it would push Taiwan's defence spending from 2.9 per cent of GDP down to 2.5 per cent.
The Trump administration had repeatedly told Taipei to 'finance its own defence'. The White House spokesperson said the cut 'weakens deterrence'. The Pentagon said it was reviewing existing arms-sale schedules.
Beijing's foreign ministry argued the cut 'shows that the unification trend is strengthening'. The Taiwan dollar slipped 0.4 per cent in morning trading and the TWSE index fell 1.2 per cent. Polls show declining support for the KMT's stance, but Lai's approval is also slipping.
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