China & Taiwan Update, December 5, 2025 (Institute for the Study of War)

Taiwanese defense spending: Taiwanese President Lai announced the introduction of the largest special defense budget in Taiwanese history. The proposed budget would markedly improve Taiwanese capabilities and efforts to implement an asymmetric defense to deter a PRC invasion.
Taiwanese defense spending: The KMT and TPP are organizing opposition to the special defense budget, which could jeopardize Taiwanese national defense and international perceptions of Taiwanese resilience. The KMT has echoed CCP talking points framing the spending as provocative.
Taiwanese submarines: The indigenously produced Taiwanese Hai Kun submarine faces continued political opposition despite conducting successful sea acceptance trials. Continued opposition may undermine the ability of the Taiwanese Navy to respond to a PRC invasion or blockade.

China & Taiwan Update, December 5, 2025 | ISW

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