Written by Brian Hioe. US PRESIDENT DONALD TRUMP alarmed earlier this month after comments suggesting that he would decide whether to suspend arms sales to Taiwan after meeting with Chinese President Xi Jinping in April.
Category: Defence
Beyond Politics: The Economic Logic Behind Taiwan’s Defence Budget
Written by Domingo I-Kwei Yang and Chan-Hsi Wang. This article argues that a new trend is emerging in Taiwan’s debate over defence spending, elevating the economic logic behind defence investment. It identifies the shift from fiscal burden to strategic investment, from buyer to co-production partner with the US and “peace through strength” as an economic strategy that fuses military readiness with an economic agenda.
Taiwan’s $40 Billion Defence Pledge: Powder Keg or Firewall?
This article examines whether Taiwan’s record NT$1.25 trillion defence package in 2025 strengthens deterrence or unintentionally accelerates strategic and demographic risk. The piece argues that both major parties rely on the same unspoken assumption that the United States will intervene decisively. It proposes a viable third path that balances readiness with societal resilience.
US-Taiwan Relations 2025 Review and 2026 Outlook
Written by Chieh-Ting Yeh. This article reviews an eventful year of 2025 in Taiwan-US relations. Defence and trade continue to be the most important issues of the bilateral relationship under the Trump administration. It argues that the narrative surrounding it is fundamentally reactive and does not inspire hope or action. We need a more robust, imaginative, positive, optimistic, uplifting, inspiring, forward-looking, and hopeful narrative for US-Taiwan relations.
Facing the Uncertainty of Trump’s Taiwan Policy: Taiwan’s diplomatic, economic, and military approaches to address the significant challenge
Written by Baosheng Guo. This article analyses Taiwan’s options in the face of Trump’s uncertain and unpredictable Taiwan policy. It suggests that Taiwan should urge the US to provide strategic clarity and strengthen its relationship with Europe. Taiwan should also weaponise the interdependence of its semiconductor industry with the US and prepare to restart its research and development of nuclear weapons.
Divided Not Doomed: Domestic Challenges for the Lai Administration’s Foreign Policy
Written by Nils Peterson. This article analyses the domestic challenge for the Lai administration’s foreign policy under a KMT-aligned Legislative Yuan. The divided government poses two potential hurdles: the risk of domestic gridlock and fights over defence appropriation funding. These challenges will require some degree of compromise between the KMT and the DPP, reinforced by the recent recall campaigns.