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3h ago

Taiwan Seeks U.S. Extension on Arms Deals as Legislature Blocks $40 Billion Defense Plan

Failure to move President Lai's $40 billion plan risks forfeiting U.S.-approved deliveries under expiring LOAs.

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A US-made TOW-2A wire-guided anti-tank missile is launched by Taiwanese soldiers from a M1167 TOW carrier vehicle at the Fangshan training grounds in Pingtung, Taiwan, August 26,2024. REUTERS/Ann Wang/File Photo
Taiwanese President Lai Ching-te's ambitious $40 billion defence spending plan is caught in a political deadlock
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Overview

  • Taiwan’s defense ministry said U.S. LOA price proposals expire on March 15 with a first payment due March 31 and it will request an extension to prevent cancellation of TOW missiles, Javelins, and M109A7 howitzers.
  • Opposition parties advanced a smaller TPP bill that caps spending at NT$400 billion through 2033 with annual allocations and funds systems like HIMARS, M109A7, Javelins, TOWs, and loitering munitions.
  • The TPP plan omits several preapproved U.S. sales, scraps the proposed T-dome air defense network, and drops a 200,000-drone initiative included in the government’s package.
  • The government’s proposal has been blocked about 10 times since early December, with President Lai warning the stalemate will delay capability gains and erode perceptions of Taiwan’s resolve.
  • U.S. officials publicly welcomed the $40 billion plan and lawmakers urged swift approval, as analysts point to rising PLA pressure and a U.S. intelligence judgment of a 2027 readiness target.