Taiwan plans $40 billion defense upgrade to counter China

Taiwan announced a $40 billion special budget for arms purchases and to build an air defense system, aiming to bolster its defenses against China. The eight-year allocation, from 2026 to 2033, follows President Lai Ching-te's pledge to increase defense spending to 5% of GDP amid escalating threats from China. This initiative includes acquiring precision-strike missiles and developing joint defense capabilities with the U.S., while also addressing psychological warfare.