How Trump’s Beijing bargaining could derail Taiwan’s multibillion-dollar defence budget

South China Morning PostEN 1 min read 100% complete by Lawrence ChungFebruary 22, 2026 at 11:00 AM

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Taiwan's parliament will prioritize reviewing a $40 billion defense budget bill, urged by a bipartisan group of 37 US lawmakers who emphasize the need for increased defense spending to deter China. The US lawmakers' letter, dated February 12, warned that partial approval of the budget could weaken Taiwan's defenses amid intensifying military pressure from Beijing. However, Donald Trump's recent suggestion of consulting with China on arms sales to Taiwan could complicate the bill's passage. Analysts suggest this could empower Taiwan's opposition parties to reshape the final version of the bill. Legislative speaker Han Kuo-yu has stated the bill will be a top priority, reaffirming Taiwan's commitment to its relationship with the US and regional stability.

Key Entities & Roles

Key Player Opposition Context

Han Kuo-yu 60% Beijing ×260% Xi Jinping 60% Washington 60% William Lai Ching-te 70% China 70% United States ×280% Donald Trump 80% Taiwan ×690%

Keywords

taiwan defence budget 100% us-taiwan relations 80% china 70% military pressure 60% arms sales 60% deterrence 50% legislature 50% indo-pacific 40%

Sentiment Analysis

Neutral

Score: -0.10

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South China Morning Post

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taiwan defence budget us-taiwan relations china military pressure arms sales deterrence legislature indo-pacific

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