29 August 2025

The Key to Taiwan’s National Defense Lies Beyond Budget Figures

Alfred Chia Hsing Lin

Taiwan’s security is too often reduced to a number on a spreadsheet or a partisan talking point. Commentators such as Alexander B. Gray have issued valid warnings: that Taiwan’s defense spending remains inadequate, that the balance of power across the Taiwan Strait is tilting toward Beijing, and that U.S. support is not guaranteed. These are legitimate concerns. But the exclusive focus on budget figures and political blame games risks obscuring the far greater challenge: Taiwan’s misallocated budget and energy on domestic politics rather than managing military procurement projects.

The most urgent reality is that the ambitions of the People’s Liberation Army (PLA) are no longer limited to Taiwan; Beijing’s military modernization is aimed at achieving political reordering. Taipei cannot be expected to shoulder the burden alone, because the defense of Taiwan is not a parochial issue. Taiwan’s arms procurement plans and military doctrine, no matter how ambitious, cannot by themselves pose a credible counterweight to the PLA’s systemic rise.

Just as Europe’s security depends on NATO’s collective strength, Asia’s stability requires multilateral coordination. A formal alliance structure akin to NATO may be politically unrealistic in the short term, given the region’s fragmented geopolitics. But this does not invalidate the need for multilateral thinking. When planning for contingencies in the Taiwan Strait and assessing the regional implications of PLA expansion, leaders must resist the temptation to demand that Taiwan engage in an unsustainable arms race – such as calls to increase its military budget to over 10 percent of GDP. This is not only fiscally irresponsible; it is strategically misguided.

Instead, the United States should lead efforts to embed Taiwan into a broader, institutionalized network of regional resilience. This includes automated and secure intelligence sharing, joint logistical and ammunition planning, and cooperative frameworks for maritime security and coastal defense training with key regional partners. For its part, Taiwan must orient its defense priorities toward this multilateral strategy – not reduce defense policy to a domestic contest over political credit or procurement contracts.

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