Taiwan lawmakers approve $7.6 bn drone budget as China threat grows

The Legislative Yuan, Taiwan's parliament, has approved a budget of $7.6 billion for the production of locally made drones to bolster the island's defenses against potential threats from China. This move comes as Taiwan seeks to strengthen its military capabilities and reduce its reliance on US arms sales. The proposal, backed by opposition parties Kuomintang (KMT) and Taiwan People's Party (TPP), was initially rejected by President Lai Ching-te's government, who wanted to allocate up to NT$210 billion ($6.6 billion) in a special budget for Taiwan-made unmanned vehicles over a five-year period.

However, the opposition opted for a more gradual approach, proposing that NT$240 billion be allocated over six years and included in the annual budget. KMT lawmaker Hsu Chiao-hsin emphasized the importance of encouraging localisation and domestic production, stressing the need for reputable manufacturers that can provide non-red (non-Chinese) supply chains, maintain cybersecurity, and ensure stable growth.

Taiwan's Vice President Hsiao Bi-khim highlighted the urgency of building up drone and counter-drone capabilities to counter China's grey-zone activities and potential military threats. Taiwan has been urged by Washington to increase its defense spending, with the war in Ukraine demonstrating the critical role of smaller and more nimble weaponry, including drones, in asymmetric warfare against a larger military.