Taiwan’s new opposition leader against defence spending hike

Taiwan cannot afford to increase its defense budget to more than three percent of GDP, which could derail the government’s spending plans, the new leader of the democratic island’s largest opposition party told AFP.

The Kuomintang party (KMT) controls the parliament and government purses with the help of the Taiwan People’s Party and has close ties with China.

Taiwanese president Lai Ching-te, who leads the Democratic Progressive Party (DPP), aims to increase defense spending to more than three percent of GDP next year and five percent by 2030, following pressure for the United States to spend more to defend itself against a potential Chinese attack.

China claims Taiwan is part of its territory and has threatened to use force to bring the island under its control.

“The US’s expectations are far above what we can reasonably meet,” Cheng Li-wun, 55, told AFP in an interview before officially assuming the post of KMT chief on Saturday.

“Taiwan is not an ATM; we really don’t have that much money,” he said.

“We are absolutely committed to defending Taiwan, but this is not a blank check. That’s why I said we need to have a reasonable defense budget.”

Lai’s government has proposed NT$949.5 billion (US$31 billion) or 3.32 percent of GDP for defense spending next year.

It also plans to seek up to NT$1 trillion in private funds to improve the island’s air defense systems and increase its capacity to produce and store munitions for wartime.

Parliamentary approval is required for spending proposals to come into force.

The opposition-controlled legislature cut the 2025 general budget and froze some defense spending.

It is unclear how many KMT MPs in parliament support Cheng’s views, but he insists it is the party’s “vast majority”.

Outgoing KMT chief Eric Chu has previously said the party supports increasing defense spending to more than three percent of GDP, but opposes Taiwan’s purchase of U.S. arms and equipment to close its trade deficit.

Although the United States severed official diplomatic ties with Taiwan in favor of China in 1979, it remains the island’s largest arms supplier.

Cheng accused Lai of pushing Taiwan towards a possible war in which the island would be the “biggest loser”.

– ‘Senseless arms race’ –

“If cross-Strait relations are peaceful and stable, we do not need a meaningless arms race,” Cheng said, insisting that dialogue with Beijing was the best option.

China cut off high-level communications with Taiwan in 2016 after Lai’s predecessor, Tsai Ing-wen, a DPP member, came to power.

The origins of the dispute between China and Taiwan date back more than 75 years to the Chinese civil war. Chiang Kai-shek’s nationalist forces were defeated by Mao Zedong’s communist fighters and he fled to Taiwan.

Cheng said the “status quo” between Taiwan and China “cannot remain unchanged forever” and that there will inevitably be a “process of change”.

Adding that he was willing to meet with Chinese President Xi Jinping, China said, “For now, we are working intensively to prevent the incident from turning into war, but rather to move towards reconciliation and peace.”

Cheng began his political career in the DPP before moving to the KMT in 2005. She was the only female candidate in the October 18 election, which was tainted by allegations of Chinese interference.

Xi sent a congratulatory message to Cheng after his victory and called on both sides to “advance national unification”.

Cheng, who has lost three consecutive presidential elections, said the KMT “cannot afford to lose again” in 2028.

bur-amj/hmn/fox