TAIPEI – Taiwan will introduce a US$40 billion (S$52 billion) supplementary defence budget to underscore its determination to defend itself in the face of a rising threat from China, President Lai Ching-te said on Nov 26.

China, which views democratically governed Taiwan as its own territory, has ramped up military and political pressure over the past five years to assert its claims, which Taipei strongly rejects.

As Taiwan faces calls from Washington to spend more on its own defence, mirroring US pressure on Europe, Mr Lai said in August he hoped for a boost in defence spending to 5 per cent of gross domestic product (GDP) by 2030.

Unveiling the NT$1.25 trillion (S$51.8 billion) package, Mr Lai said history had proven that trying to compromise in the face of aggression brought nothing but “enslavement”.

“There is no room for compromise on national security,” he said at a press conference in the presidential office.

“National sovereignty and the core values of freedom and democracy are the very foundation of our nation.”

Taiwan Defence Minister Wellington Koo said the budget, which will run from 2026 to 2033, will cover items including missiles, drones and the

new “T-Dome” air defence system

.