Taiwan should rapidly expand its drone capabilities to strengthen deterrence against potential conflict with China, the top U.S. representative to the island said on Thursday, underscoring growing support for Taipei’s defense modernization efforts.
Speaking at a drone industry forum in Taichung, Raymond Greene, director of the American Institute in Taiwan (AIT), described unmanned systems as a critical element of Taiwan’s future security strategy. Although Washington and Taipei do not maintain formal diplomatic ties, the United States remains Taiwan’s largest arms supplier and strongest international supporter.
Greene said drones offer a transformative opportunity to improve Taiwan’s defense while helping preserve stability across the Indo-Pacific region. He emphasized that cooperation between the United States and Taiwan could strengthen a democratic drone supply chain and reinforce collective deterrence among like-minded nations.
Drawing lessons from the war in Ukraine, Greene noted that drones have enabled smaller forces to defend themselves effectively against much larger militaries. He argued that the strongest deterrent would be to transform Taiwan into a "hornet’s nest" equipped with air, surface, and subsurface drones capable of complicating any potential military operation.
Taiwan has increasingly prioritized asymmetric warfare capabilities, including drones, missiles, and other cost-effective defense systems designed to counter China's larger military. However, political disagreements have slowed some funding initiatives.
In May, Taiwan’s opposition-controlled legislature approved only about two-thirds of the additional $40 billion defense budget requested by President Lai Ching-te, allocating funding primarily for U.S. weapons purchases while excluding several domestic defense initiatives.
To address those gaps, the government has proposed a new T$210 billion (US$6.59 billion) defense package that would run through 2031. The proposal includes investments in surveillance drones, coastal attack drones, and small unmanned surface vessels aimed at strengthening Taiwan’s coastal defense and intelligence capabilities.
Taiwan’s main opposition party, the Kuomintang (KMT), has also introduced its own drone development proposal. The legislation would authorize up to T$240 billion in spending over six years, with annual expenditures capped at T$40 billion. Unlike the government’s proposal, the KMT wants drone procurement funded through the regular national budget instead of a special defense budget.
President Lai reiterated this week that expanding Taiwan’s drone capabilities is becoming increasingly urgent as modern warfare evolves and geopolitical tensions continue to rise.
Speaking during a meeting of the ruling Democratic Progressive Party, Lai said building asymmetric defense capabilities is "a race against time" and remains a national security priority. His administration has consistently argued that strengthening Taiwan’s self-defense is essential to maintaining peace and stability across the Taiwan Strait.
China continues to claim Taiwan as part of its territory and has increased military pressure around the island in recent years. Beijing has not ruled out the use of force to achieve unification. Taiwan, however, rejects China’s sovereignty claims, with Lai maintaining that only the people of Taiwan have the right to determine the island’s future.


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