Taiwan parliament OKs $25bn defense budget, less than Lai sought

Taiwan's opposition-controlled parliament on Friday approved $25 billion in extra defense spending, slashing President Lai Ching-te's requested $40 billion package by roughly 38 percent after months of political fighting over how to counter China's military threat. The vote of 59 in favor came just days before U.S. President Donald Trump was expected to travel to Beijing for a summit with Chinese leader Xi Jinping, who has warned Washington against sending more weapons to Taiwan. The Kuomintang (KMT), Taiwan's largest opposition party which favors closer ties with Beijing, and the smaller Taiwan People's Party (TPP) pushed through their own version of the spending package worth T$780 billion, saying the government's original proposals were unclear and could lead to corruption. KMT caucus leader Fu Kun-chi said the approved spending would safeguard Taiwan's security while watching over "the hard-earned money of the people." The package focuses on U.S. arms including Patriot missiles, Hellfire missiles, counter-drone systems, as well as artillery and anti-armor weapons. A second phase of arms sales worth more than $15 billion could follow, party officials said, adding they would "fully support" additional acquisitions. China claims Taiwan as its own territory and has threatened to forcibly seize the island. The vote follows Washington's announcement in December of an $11 billion arms sales package to Taiwan, the largest ever, with a potential additional $14 billion package reportedly pending. Taiwan's defense ministry had wanted the larger budget to fund not only U.S. weapons but also domestically made equipment such as drones to increase deterrence. The U.S. is Taiwan's most important security backer, though China has repeatedly demanded Washington end arms sales to the island.