Taiwan lawmakers approve $7.6 billion drone budget amid growing China threat

Taiwan's parliament has approved a substantial $7.6 billion budget dedicated to the development and production of domestically made drones. This move signifies the island democracy's commitment to bolstering its defenses against the backdrop of escalating threats from China.

The Legislative Yuan's decision reflects Taiwan's broader strategy to ramp up military spending and cultivate its defense industry. The island aims to produce more of its own equipment and ammunition, a critical step as China continues to claim Taiwan as its territory and has not ruled out the use of force.

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As we promote the development of the drone industry, we must genuinely encourage localisation and domestic production. We need to support reputable manufacturers that can deliver non-red (non-Chinese) supply chains, ensure a certain level of cybersecurity and maintain stable growth.

Lawmakers navigated differing proposals regarding the drone budget. While President Lai Ching-te's government initially sought NT$210 billion ($6.6 billion) for unmanned vehicles over five years, opposition parties, including the Kuomintang (KMT) and Taiwan People's Party (TPP), successfully championed a larger NT$240 billion allocation spread over six years, to be integrated into the annual budget.

KMT lawmaker Hsu Chiao-hsin emphasized the importance of localization and domestic production, calling for support of reputable manufacturers with non-Chinese supply chains, robust cybersecurity, and stable growth. Vice President Hsiao Bi-khim underscored the urgency of building drone and counter-drone capabilities to counter China's "grey-zone activities" and potential military threats, stressing that Beijing must not miscalculate Taiwan's resolve to defend itself.

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Taiwan urgently needs to build up drone and counter-drone capabilities to respond to China’s grey-zone activities, coercive actions that fall short of an act of war, as well as potential military threats. We must not allow the regime in Beijing to miscalculate Taiwan’s determination to defend itself.