Conflict & Security
Taiwan approves $7.6bn drone budget as China threat grows
Taiwan lawmakers approved a $7.6 billion budget for locally made drones on Thursday as the island seeks to strengthen its defences against a potential Chinese attack.
The spending proposal, backed by the opposition Kuomintang and Taiwan People's Party, cleared parliament after lawmakers rejected a plan submitted by President Lai Ching-te's government.
The approved plan allocates NT$240 billion over six years and will be included in the annual budget. Lai's government had sought up to NT$210 billion, or $6.6 billion, in a special budget for Taiwan-made unmanned vehicles, including coastal surveillance, attack and surface drones.
After initially insisting on an annual spending cap of NT$40 billion, the Kuomintang agreed to allow some flexibility. It also accepted that the defence ministry would handle the drone procurement process.
Cabinet spokesperson Michelle Lee said that, although the government's version was not supported, it would “make every possible effort to secure the necessary funding as soon as possible” for drone procurement. “National security cannot afford delays,” she said.
Kuomintang lawmaker Hsu Chiao-hsin said before the vote that Taiwan should encourage localisation and domestic production and support manufacturers able to provide non-Chinese supply chains, cybersecurity and stable growth.
US calls for Taiwan to pass the drone bill had intensified in recent weeks. Republican lawmaker Young Kim said during a Taipei visit last month that the wars in Ukraine and Iran showed Taiwan needed to buy and build drones at a large scale.
China claims Taiwan as part of its territory and has threatened to seize it by force. Taiwan remains heavily reliant on US arms sales and is under pressure from Washington to spend more on its own security.
Lai's government has earmarked a record NT$1.1 trillion in defence spending for 2027, accounting for more than 3 percent of GDP.
Update
Cabinet spokesperson Michelle Lee said the government would make every possible effort to secure the necessary funding for drone procurement as soon as possible.
Michelle Lee said national security could not afford delays.
The government has already finalised its 2027 general budget, and the 2026 annual general budget was passed this month after a record delay.
Source note: AFP news report published on 27 August 2026 at 11:23:32 UTC.
Update
Premier Cho Jung-tai said he would weigh whether the bill met Taiwan's national security and defence industry needs.
The Kuomintang agreed to allow some flexibility after initially insisting on an annual spending cap of NT$40 billion.
The Kuomintang accepted that the defence ministry would handle the drone procurement process.
US calls for lawmakers to pass the drone bill had intensified in recent weeks, including comments by Republican lawmaker Young Kim during a Taipei visit.
Source note: AFP news report published on 27 August 2026 at 09:23:33 UTC.
Update
Kuomintang lawmaker Hsu Chiao-hsin said Taiwan should encourage localisation and domestic production and support manufacturers with non-Chinese supply chains and cybersecurity standards.
Vice President Hsiao Bi-khim said Taiwan urgently needs drone and counter-drone capabilities to respond to China's grey-zone activities and potential military threats.
The government has finalised its 2027 general budget, and the 2026 annual general budget was passed this month after a record delay.
Taiwan remains heavily reliant on US arms sales and is under pressure from Washington to spend more on its own security.
Lai's government has earmarked a record NT$1.1 trillion in defence spending for 2027, more than 3% of GDP.
Source note: AFP news report published on 27 August 2026 at 08:52:15 UTC.
Update
The approved opposition-backed proposal provides NT$240 billion in spending over six years and would be included in the annual budget.
President Lai Ching-te's government had sought up to NT$210 billion in a special budget for Taiwan-made unmanned vehicles over more than five years.
The government's plan would have covered coastal surveillance, attack and surface drones and been overseen by the defence ministry.
Source note: AFP news report published on 27 August 2026 at 08:28:19 UTC.
Source
AFP news report published on .