TAIPEI (TVBS News) — President Lai Ching-te (賴清德) unveiled Taiwan's most ambitious defense modernization program Friday (Oct. 10), announcing plans for a revolutionary "Taiwan Dome" (台灣之盾) air defense system. Speaking during National Day celebrations, Lai declared defense spending will exceed 3 percent of GDP next year and reach 5 percent by 2030. The announcement represents a seismic shift in Taiwan's defense strategy as cross-strait tensions escalate.
Lai outlined the system's comprehensive capabilities during his address at the Presidential Office, promising multi-layered protection for Taiwan's 23 million citizens. "We will accelerate our building of the Taiwan Dome, establish a rigorous air defense system in Taiwan with multi-layered defense, high-level detection, and effective interception, and weave a safety net for Taiwan to protect the lives and property of citizens," he declared. The system will combine cutting-edge technology and artificial intelligence to create what Lai calls a "smart defense network."
The defense budget will nearly double from current levels within five years, representing an unprecedented commitment to military modernization. "Defense spending, as it is defined by NATO, will exceed 3 percent of GDP next year, and will reach 5 percent of GDP by 2030, showing our determination to safeguard the nation," Lai emphasized to thousands gathered for the ceremony. This dramatic increase positions Taiwan among the world's highest military spenders relative to economic output.
Lai characterized the spending surge as both deterrent against Chinese aggression and catalyst for domestic defense industry development. "The increase in defense spending has a purpose; it is a clear necessity to counter enemy threats and a driving force for developing our defense industries," he explained. The Taiwan Dome system promises multiple layers of protection against drones, rockets, and missiles, following Israel's proven Iron Dome model.
The defense initiative emerges as Taiwan confronts escalating military pressure from China, which considers the democratic island a breakaway province requiring unification. Beijing regularly conducts military exercises near Taiwan and maintains the option of using force to achieve its territorial objectives. However, experts question whether Taiwan can afford such expensive systems within proposed budget limits, noting Israel's Iron Dome relies on U.S. technology Taiwan cannot easily access.
Despite technical and financial challenges, the announcement marks Taiwan's most significant defense modernization effort amid rising regional tensions. Lai outlined three major goals for enhanced defense spending: accelerating Taiwan Dome development, integrating artificial intelligence technologies for smart defense systems, and investing in innovative defense technologies through international collaboration. The comprehensive approach signals Taiwan's commitment to technological superiority over numerical disadvantage.
The defense overhaul extends beyond military hardware to encompass comprehensive societal resilience initiatives integrating civilian and military preparedness. Lai emphasized building capabilities that combine disaster response and critical infrastructure protection with traditional defense systems. Taiwan's enhanced posture aims to strengthen deterrence while maintaining cross-strait status quo, with Lai calling on China to abandon force and respect international law.
The ambitious modernization program reflects Taiwan's determination to preserve its democratic institutions while contributing to broader Indo-Pacific stability. As global attention focuses on potential regional flashpoints, Taiwan's investment in advanced defense capabilities signals commitment to self-reliance and security partnerships. The initiative positions Taiwan as a critical link in the region's democratic security architecture. ◼