How Trump’s Beijing bargaining could derail Taiwan’s multibillion-dollar defence budget
South China Morning Post
by Lawrence ChungFebruary 22, 2026
AI-Generated Deep Dive Summary
Taiwan’s parliament is set to prioritize the review of a controversial NT$1.25 trillion ($40 billion) special defense budget bill as its new session begins, amid growing pressure from Washington. However, U.S. President Donald Trump’s recent remarks about consulting Chinese President Xi Jinping on arms sales have introduced new complexities into the debate, potentially giving Taiwan’s opposition parties more leverage to reshape the final version of the bill.
The proposed defense budget, a significant increase from previous years, has sparked intense political and public scrutiny in Taiwan. Proponents argue that it is essential for addressing growing security concerns, particularly amid rising tensions between Taiwan and China. However, critics, including opposition lawmakers, contend that the allocation is excessive and could strain Taiwan’s finances without guaranteeing improved safety.
Trump’s announcement to consult Xi Jinping on arms sales has added another layer of uncertainty. This move could signal a shift in U.S. policy toward Taiwan, potentially influencing how Taipei navigates its defense strategy. Analysts suggest that Trump’s decision might embolden opposition parties to demand greater transparency and accountability in the budget process, possibly leading to amendments or delays in the bill’s approval.
The situation underscores the delicate balance of power dynamics in the region. As Taiwan seeks to strengthen its defenses, it faces not only domestic political challenges but also external pressures from both the U.S. and China. The outcome of this debate could have significant implications for Taiwan’s security, regional stability, and U.S.-China relations.
This issue matters deeply to readers interested in global politics, particularly those following developments in Asia. It highlights the interconnected nature of international relations, where a single statement from a world leader can ripple through multiple governments and impact billions of dollars in defense spending. The resolution of this matter will likely shape Taiwan’s strategic direction for years to come.
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Originally published on South China Morning Post on 2/22/2026