Taiwan’s New Opposition Leader Challenges Defence Spending Plans

Taiwan’s newly elected opposition leader, Cheng Li-wun, has expressed strong reservations about increasing the island’s defence budget to over three percent of its Gross Domestic Product (GDP). In comments to AFP, Cheng, who is set to officially take over the chair of the Kuomintang Party (KMT) on Saturday, indicated that such a hike could derail the government’s financial plans. The KMT, which controls the legislature with support from the Taiwan People’s Party, maintains close ties with China.

The current administration, led by Lai Ching-te of the Democratic Progressive Party (DPP), aims to raise defence spending to more than three percent of GDP next year and to five percent by 2030. This initiative responds to pressure from the United States for Taiwan to enhance its military capabilities to deter a potential Chinese attack. China asserts sovereignty over Taiwan and has not ruled out the use of force to assert its claim.

Cheng, aged 55, articulated her concerns clearly, stating, “The US’ expectations far exceed what we can reasonably afford. Taiwan isn’t an ATM — we really don’t have that much money.” She emphasized the need for a reasonable defence budget while affirming Taiwan’s determination to defend itself. The government’s proposed budget includes NT$949.5 billion (US$31 billion), representing 3.32 percent of GDP, earmarked for defence in the upcoming year. Additionally, plans are underway to secure up to NT$1 trillion in special funding to bolster the island’s air defence systems and enhance its ammunition production and storage capabilities.

The proposed budget requires parliamentary approval, and the KMT-controlled legislature recently cut the general budget for 2025 and froze portions of the defence spending. Cheng asserts that the “vast majority” of KMT lawmakers support her views, despite the party’s previous chair, Eric Chu, advocating for an increase in defence spending beyond three percent of GDP, while opposing the purchase of US weapons as a means to balance Taiwan’s trade deficit.

Historically, the United States severed formal diplomatic relations with Taiwan in 1979, shifting recognition to China, yet it remains Taiwan’s principal arms supplier. Cheng has criticized Lai’s administration for allegedly driving Taiwan towards a conflict where the island would suffer the most. “If cross-strait relations are peaceful and stable, we don’t need a pointless arms race,” she stated, advocating for dialogue with Beijing as the preferable route.

The tensions between Taiwan and China trace back over 75 years, originating from the Chinese civil war when Chiang Kai-shek’s Nationalist forces fled to Taiwan after being defeated by Mao Zedong’s Communist troops. Cheng noted that the current “status quo” cannot persist indefinitely and that a process of change is inevitable. She expressed her commitment to preventing escalation into war, advocating for reconciliation and peace, and even indicating her willingness to meet with Chinese President Xi Jinping.

Cheng’s political career began with the DPP before she transitioned to the KMT in 2005. She was the sole female candidate in the elections held on October 18, which were marred by allegations of Chinese interference. Following her victory, Xi sent a congratulatory message, urging both sides to “advance national reunification.” After the KMT’s recent losses in three consecutive presidential elections, Cheng declared that the party “cannot afford to lose again” in the upcoming elections in 2028.

Taiwan’s political landscape, defined by its complex relationship with China and the pressing demands of defence spending, is under significant scrutiny as the KMT prepares to assert its position in the face of rising tensions and financial constraints.