Taiwan earmarks $8.88 billion submarine project in response to PLA threats

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Taiwan has committed to a NT$284 billion (US$8.88 billion) budget to build seven new submarines over the next 14 years to bolster its defense against China. Analysts have labelled  this massive budget as “irresponsible”, given the prototype is yet to complete sea trials.

Taiwan has sanctioned billions of dollars to build seven more submarines over the next 14 years as part of efforts to deter potential attacks from the People’s Liberation Army (PLA).

The cabinet approved the budget on Thursday and legislators are expected to be presented for review and approval at the end of this month.

Critics noted that the action demonstrated Taiwanese leader William Lai Ching-te’s willingness to defend the island, but the administration was “irresponsible” in approving the NT$284 billion (US$8.88 billion) building project before the submarine prototype had finished sea trials.

Cabinet spokesman Chen Shih-kai mentioned that the submarines would be constructed between 2025 and 2038 under the Indigenous Defence Submarine Programme. 

“The government is committed to maintaining peace and stability in the Indo-Pacific region, continually enhancing national defence capabilities, and implementing policies such as indigenous vessel and aircraft production to build a resilient Taiwan and safeguard national sovereignty,” Chen said.

The prototype submarine, known as Hai Kun or Narwhal, was unveiled in September last year. Built by the CSBC Corporation Taiwan, it cost around NT$26 billion and had a distinctive X-shaped rudder design for shallow water operations.

According to Admiral Huang Shu-kuang,head of the submarine building programme, the submarine will use a combat system by Lockheed Martin and carry US-made MK-48 heavyweight torpedoes.

Last month, Taiwanese defense chief Wellington Koo stated that the prototype was nearing the end of its port acceptance test, which will be followed by a sea acceptance test. According to local press reports, the submarine is scheduled to pass its first sea acceptance test next month, with delivery likely in November of next year.

The projected expansion of Taiwan’s submarine force comes amid rising tensions with Beijing, which regards Taiwan as part of its territory. While most countries, including the United States, do not officially recognise Taiwan as a separate state, Washington backs the island’s defense and opposes any violent attempts to change its situation.

Taiwan’s decision to build seven additional submarines demonstrates its commitment to improving its defensive capabilities. Analysts believe that these submarines, together with ground-based and ship-launched missiles, might successfully thwart a PLA amphibious onslaught.

Despite the benefits, the budget is receiving heavy criticism from analysts. Military analyst Lu De-yun, a former Taiwanese defense ministry press secretary, stated that the government should allocate its money in accordance with the budget laws and fiscal discipline.

“The prototype hasn’t even undergone sea trials yet, so how can such a massive budget for the subsequent construction of seven submarines be approved so hastily? This isn’t a case of ‘drawing the target after shooting the arrow’; it’s more like shooting the arrow without even drawing a target,” Le noted.

“This move is not only hasty and irresponsible but also astonishing, as the average cost of NT$40 billion per submarine is much higher than the building cost of the prototype, which greatly deviates from global shipbuilding norms. This urgency inevitably raises suspicions – what unspoken reasons could there be for such a rush?” he said.

Chieh Chung, secretary general of the Association of Strategic Foresight, supports increased submarine construction but calls for a more cautious budget allocation method. He observes that multi-year military budgets are usually approved in smaller increments, allowing for modifications based on testing results.

“After the passage of the first-year allocation, the legislature rarely rejected the funding for the subsequent years,” Chieh noted.

The project’s initial investment will be NT$2 billion, with additional amounts subject to legislative approval.

News writer and reporter specializing in geopolitics and international relations. Published author dedicated to making global issues relatable and engaging.

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