That approach can speed up the development of some weapons as the related technologies could take Taiwan many years to develop on its own, he adds. вЂњThink of it as a cocktail policy вЂ“ an indigenous base with foreign technology mixed in,вЂќ says Su Tzu-Yun, senior analyst at the Institute for National Defense and Security Research (INDSR), an MND-affiliated think tank. While the arms must be manufactured in Taiwan, foreign technology can be incorporated if necessary.

The allocation will be treated as a special budget, freeing it from provisions of the Budget Act that normally constrain defense spending to around 10-11% of the total annual national budget. The acquisitions will include anti-ship missiles, air defense systems, unmanned aerial vehicles (UAVs), cruise missile systems, and submarines, as well as weapon systems for the Coast Guard. In September, TaiwanвЂ™s Cabinet approved a draft defense bill authorizing a special allocation of up to NT$240 billion (US$8.7 billion) for the purchase of indigenous weapons over a five-year period. The initiative calls for developing a national defense supply chain and emphasizes the importance of building both indigenous naval vessels and aircraft. Given the rising threat from China, the defense component of the Tsai Ing-wen administrationвЂ™s Six Core Strategic Industries plan becomes more important than ever. A barrage of cyberattacks by the PLA would weaken TaiwanвЂ™s ability to respond, the report said. The Ministry of National Defense (MND) warned in its annual report assessing the PLAвЂ™s capabilities that the Chinese military could вЂњparalyzeвЂќ TaiwanвЂ™s anti-air and anti-surface systems. Beijing said in March that it would spend ВҐ1.35 trillion (US$210 billion) on defense in the coming year, up 6.8% from the 2020 budget. BeijingвЂ™s provocations thus fall into a gray zone, a nebulous space between peace and war.ДЄt the same time, ChinaвЂ™s military spending continues to rise. An ADIZ is used to identify, monitor, and control foreign aircraft but is not considered territorial airspace. In August, China flew military helicopters into TaiwanвЂ™s ADIZ for the first time.Д¬hinaвЂ™s ruling Communist Party is showing off the capabilities of the PeopleвЂ™s Liberation Army (PLA) to a nationalistic populace, probing TaiwanвЂ™s air defense, and sending a warning to the U.S., TaipeiвЂ™s paramount security partner. The relentless pace of the incursions вЂ“ over 600 sorties since last year вЂ“ and TaiwanвЂ™s limited options for response have highlighted the vulnerability of the islandвЂ™s air defense as Beijing continues its encroachments. Since early 2020, Chinese military aircraft have regularly intruded into TaiwanвЂ™s southwest air defense identification zone (ADIZ). Under the Six Core Strategic Industries initiative, the domestic defense supply chain is growing, though foreign technology still plays an integral role. TaiwanвЂ™s military is set to receive a windfall in the form of a five-year special budget focused on indigenous defense capabilities.

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